Hedge Funds Target Spanish Real Estate Investments

George Soros and John Paulson are taking major stakes in the flotation of a Spanish property group, reflecting an increasing confidence among investors in the eurozone periphery’s economic recovery.

The two hedge fund managers – who were ranked first and fourth in the world for their total earnings in 2013 – have both taken €92m stakes in Hispania Activos Inmobiliarios, said people with knowledge of the deal.

Last week, Hispania announced plans for an initial public offering of remaining shares – having already raised a substantial part of its €500m target from early-stage investors. Its prospectus is awaiting approval from Spain’s regulators.

Hispania is seeking to list on the Madrid Stock Exchange as a real estate investment trust, focusing on property with scope for value growth, primarily in key cities. It is targeting a double-digit annual total return over a six-year period, people familiar with the plans said. The Reit will be managed by Azora, an independent asset manager founded in 2003 that has accumulated €2.8bn of assets across Europe. Azora refused to comment.


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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza