Quartiers Properties is entering an agreement with London-based JLL and starting a process to refinance the company’s balance sheet liabilities to improve the Group’s financial cash flow

With the assistance of JLL’s specialist hotel and property financing group, Quartiers Properties AB (publ) will work to refinance part of the company’s financial liabilities. The purpose of the refinancing is to free up cash flow to continue investment, reduce the company’s cost of capital and gain the basis for long-term financing with a repayment structure that is better tailored to Quartiers’ business operations.

Quartiers Properties has made significant progress in 2019 on both the sale of apartments under production and the company’s portfolio of investment properties. The company’s apartment complex in Benahavís has been substantially improved, owing to the new management that took over its operation in early 2019. In addition, Boho Restaurant has launched, and the hotel at Boho Club is expected to open shortly. The fact that the company now has more operationally active properties has boosted interest on the international capital market for refinancing Quartiers, including interest from London-based funds.

“2018 and 2019 have seen a major focus on investment in and development of our existing properties. The emphasis in raising capital has been on Spanish banks and funds, and through good contacts in Madrid we have managed to raise around SEK 150 million in loan financing. The challenges we currently see on the Spanish capital market are that banks require a high rate of repayment with full repayment over 12–15 years, and Spanish investment funds have opted to primarily focus on financing with much higher levels of interest compared with banks. So it’s great to now be starting to work with JLL with the aim of achieving a longer-term financing structure, in particular with better repayment terms and interest on a par with or slightly above what Spanish banks currently charge. A new financing structure would enable us to free up cash flow both immediately and on an ongoing basis through reduced interest expense, higher loan to value and lower repayments,” said Marcus Johansson Prakt, Quartiers Properties’ CEO.

JLL is a leading real-estate services company with a focus on property and investment. With operations in over 80 countries, 300 offices and 86,000 employees, JLL ranks in Fortune magazine’s Global 500 list of the world’s largest companies. JLL is the registered trademark of Jones Lang LaSalle Incorporated.

The parties aim for a new financing structure to be in place by the first half of 2020.

For further questions, please contact:

Quartiers Properties 

Marcus Johansson Prakt, Chief Executive Officer
Email: marcus.prakt@quartiersproperties.se
Phone: +46 72 018 59 98

The company in brief
Quartiers Properties is a Swedish property development company with operations on the Spanish Costa del Sol. The company was founded in 2014 and has since built up a property portfolio of investment properties and project properties. The company develops, sells and leases property.

Mangold is the company’s certified adviser. Mangold can be contacted on +46 (0)8-503 015 50 or by emailing ca@mangold.se.