Cerberus sells stake in Sotogrande Luxco to Orion

Orion Capital Managers has acquired Cerberus‘ remaining 50 percent stake in Sotogrande Luxco, a Spanish leisure real estate and hospitality company. No financial terms were disclosed. Currently, Sotogrande Luxco is developing La Reserva Club, a high-end community within Sotogrande.


LUXEMBOURG and NEW YORK, June 14, 2017 /PRNewswire-USNewswire/ — Orion Capital Managers, LLP (“Orion”) and Cerberus Capital Management, L.P. (“Cerberus”) today announced that Orion’s European Real Estate Fund IV acquired the remaining 50 percent of Sotogrande Luxco currently owned by an affiliate of Cerberus. Orion is now the sole shareholder of Sotogrande Luxco, owning c.99 percent of Sotogrande SA, the main shareholder of the business. It is envisaged that Sotogrande Luxco will launch a delisting takeover bid over the Sotogrande shares.

This transaction marks the beginning of the second phase of Sotogrande SA’s redevelopment and repositioning plan, which focuses on making the property, including its high-end private community, La Reserva Club, a luxury destination of choice within Southern Europe. Orion is committed to delivering extensive common amenities and infrastructure work to its residents and guests, while also pursuing the development of the first luxury villa community on El Mirador.

Aref Lahham, Founder and Managing Director of Orion, stated: “We are honoured to have joined forces with Cerberus in the acquisition of Sotogrande SA. Our partnership not only allowed us to acquire such a unique asset, but also provided us the proper platform to develop Sotogrande into a premier residential and leisure destination within Europe once again. Now that the first phase of our repositioning is complete, we are looking forward to our continued engagement and support of the company and its management team towards the realisation of the company’s strategic objectives.”

Lee Millstein, Global Head of Real Estate for Cerberus, stated: “Cerberus is pleased to reach this important milestone in the development of Sotogrande. Together with Orion, we have increased the attractiveness of Sotogrande as a luxury destination, helped evolve its brand in the market and improved the long-term value of the business. We believe Orion will continue to be a great steward of this asset and wish Sotogrande and its management team continued success in their plans.”

About Orion Capital Managers

Orion Capital Managers, LLP (“Orion”) is a European real estate investment firm. Orion’s business is commercial real estate investment management on behalf of major investors from around the world. The firm is dedicated to consistently deliver performance to its investor partners. Orion is wholly owned by its Founding Partners and has offices in London, Madrid, Milan and Paris. Orion Capital Managers’ local presence and experience in European markets creates a platform which responds rapidly to a broad range of transactions.

About Cerberus Capital Management, L.P.
Established in 1992, Cerberus Capital Management, L.P. is one of the world’s leading private investment firms. Cerberus has more than US $30 billion under management invested in three complementary strategies: global credit opportunities (which includes non-performing loans, corporate credit and distressed debt, mortgage securities and assets, and direct lending); private equity; and real estate. From its headquarters in New York City and network of affiliate and advisory offices in the U.S., Europe and Asia, Cerberus has the on-the-ground presence to invest in multiple asset classes globally.

About Sotogrande SA
Sotogrande SA is a Spanish company listed on the Madrid Stock Exchange (“STG”) which operates within the Leisure Real Estate and Hospitality Segment and focuses on the 20 square kilometre estate and destination called Sotogrande at the southeast point of Andalucia. The company is currently mainly developing La Reserva Club, the latest high-end community within Sotogrande.