Värde Partners sells stake in Spanish real estate business LFGA after company successfully weathers pandemic

Värde Partners has sold a 38% stake in Spanish real estate business La Finca Global Assets to majority owner Grupo La Finca.

LFGA owns 11 buildings in Madrid’s central business district as well as LaFinca Business Park, one of the largest business parks in Europe, offering more than 225,000 sq m of office space.

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Värde Partners initially purchased its stake in LFGA in December 2016. The firm said LFGA had substantially increased revenue and profitability in the period leading up to Covid-19, and remained profitable throughout the pandemic.

Tim Mooney, partner and global head of real estate at Värde Partners, said, “Through our partnership with GLF we have successfully implemented a series of value creation initiatives that have grown our investment and helped establish LFGA as a leading provider of office space in Madrid.

“LFGA has continued to perform well, despite the challenges facing the office sector, and we believe it is well-positioned to capitalize on the economic recovery when Spain emerges from the pandemic.”

The deal is expected to be completed in the first quarter of 2022.

Other recent Värde Partners exits include selling communications service provider GCX to 3i Infrastructure.

Värde completed its largest ever private equity fundraise in 2019 by pulling in $2.47bn of commitments for its 13th flagship investment vehicle.

In late 2020 the firm raced to a target-busting $1.6bn final close for The Värde Dislocation Fund in just five months, easily beating its $1bn goal in the process.

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