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Abu Dhabi fund buys share of hotel group in Spain

By Gavin Gibbon
Abu Dhabi Spain Melia
The portfolio includes the ME hotel in Madrid
  • Equity Inmuebles hotels across Spain
  • Deal passed by European Commission
  • Sovereign wealth fund assets exceed $708bn

Coral Reef, a subsidiary of Abu Dhabi Investment Authority, and Melia Hotels International have received approval to acquire a portfolio of 17 hotels from Equity Inmuebles in Spain and the Canary Islands.

Financial details around the acquisition were not revealed.

The deal was given the green light by the European Commission under EU merger regulations.

It will see Coral Reef and Melia Hotels take joint control of 12 properties and businesses owned by Equity.

Coral Reef will take sole control of a further three.

Melia – which is based in Mallorca and operates hotels in Asia, Europe, Middle East, Africa, South, Central and North America and the Caribbean – will be in complete charge of two Equity properties and businesses.

“The Commission concluded that the proposed acquisition would raise no competition concerns because of its limited impact on the market,” said a statement by the European Commission.

Another Abu Dhabi Investment Authority subsidiary last month joined Singapore’s private equity real estate firm SC Capital Partners and Goldman Sachs Asset Management in acquiring 27 hotels from Japanese developer Daiwa House Industry in a $900 million deal.

The Abu Dhabi sovereign wealth fund manages assets in excess of $708 billion.

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