SCPI CRISTAL Life enhances its European footprint with the strategic acquisition of a 4-star hotel in Andalusia, Spain boosting its investment strategy.

The SCPI CRISTAL Life has recently fortified its foothold in the European market through the strategic acquisition of a distinguished 4-star hotel nestled in the picturesque region of Andalusia, Spain. Inter Gestion REIM, the managing entity behind this investment, has unveiled this acquisition as a pivotal move aimed at diversifying its portfolio while adhering to stringent selection criteria for properties that align with the SCPI CRISTAL Life’s overarching investment philosophy.

This newly acquired asset, a 4-star hotel operating under the esteemed SENATOR Hotels & Resorts brand, stands as a testament to excellence within Spain’s high-end hospitality sector. Spanning an impressive 12,890 square meters, the hotel boasts 331 elegantly appointed rooms, two inviting swimming pools, a variety of dining establishments, and a luxurious spa. Its prime seafront location, situated in a vibrant seaside resort with a population of 105,000, ensures a robust appeal to tourists seeking both relaxation and recreation.

The acquisition is not merely a transaction; it is a strategic partnership with SENATOR Hotels & Resorts, which manages an impressive portfolio of 35 4- and 5-star properties across Spain. The deal was executed in the form of a sale-and-leaseback arrangement, securing for CRISTAL Life a net triple lease spanning two decades. This structure not only guarantees financial stability but also presents a long-term valuation opportunity for the SCPI’s stakeholders.

This acquisition signifies a critical juncture for SCPI CRISTAL Life, as it ventures into the hotel sector, complementing its existing investments in retail, healthcare, and office assets. With the integration of this inaugural hotel into its portfolio—now comprising 27 assets—CRISTAL Life embarks on a new chapter of strategic diversification. Thomas Renault, the Investment Manager at Group Inter Management, emphasizes that this investment not only elevates the SCPI’s European asset share to approximately 37% by September 30, 2024, but also underscores the organization’s commitment to enhancing its sectoral and geographical diversification.

Moreover, the Almeria hotel exemplifies a strong commitment to sustainability, boasting an SRI (Socially Responsible Investment) rating of 7.13 out of 10, as awarded by Inter Gestion REIM. This commendable score reflects adherence to economic, social, and environmental criteria, aligning seamlessly with the SCPI’s SRI objectives. The acquisition serves as a testament to CRISTAL Life’s strategic intent to champion responsible investments, resonating with the increasing expectations of investors for sustainable practices.

Financially, this significant investment—executed entirely through equity for a sum of €21.5 million, excluding tax—represents nearly 13% of the SCPI’s capitalization as of the end of September. This operation not only highlights the financial robustness of CRISTAL Life but also reinforces Inter Gestion REIM’s confidence in its fundraising capabilities. With this new asset, the SCPI solidifies its position within the European market, affirming its ambition to expand while upholding rigorous standards of quality and responsibility.

Founded in 1990, Inter Gestion REIM has established itself as a preeminent portfolio management company, recognized for its expertise in the creation and management of SCPIs. With assets exceeding €950 million across France and Europe, it stands as a formidable player in the real estate investment arena. CRISTAL Life and CRISTAL Annuity, its two flagship SCPIs with capitalizations of €168 million and €664 million respectively, embody a commitment to innovation, performance, and resilience amidst the fluctuations of economic cycles.