Spain’s undervalued tourism property sector attracts Asian investors
Platinum Estates says Spain has the best potential for tourism growth in Europe, with Chinese visitors spending the most per trip
For Hong Kong-based boutique property fund Platinum Estates, Spain is the best European destination when it comes to tourism property investment.
“The assets are still cheap and we are positive about the booming travelling demand there, especially from Chinese tourists,” said Jonnie Teh, investment director of Platinum Estates,
The firm, which is controlled by Indian textile magnate Harry Mohinani, specialises in investing in distressed real estate assets and has bought and sold properties in Hong Kong and London in recent years. It has had its sights firmly set on Spain since 2013.
In its latest move, Platinum Estates acquired 170,000 square metres of land in the coastal city of Marbella at the end of last year in order to develop a luxury resort on the beach.
The total investment is around €200 million (HK$1.7 billion), including land cost of €50 million and a budgeted further €150 million for the hotel project. It plans to construct a five-star luxury hotel and 120 villas which will be developed alongside the hotel.
“Spain has the most potential for growth in Europe,” Teh said. “It is trying hard to tap into Chinese travellers, but is lacking of nice five-star hotels.”
Spain is leading the recovery in the euro zone with stronger than expected economic growth. The country’s overall economy grew 3.2 per cent in 2015, accelerating from 1.39 per cent growth in 2014, which ended negative growth seen in the previous three years.
