Patron buys in Barcelona

The London-based private equity firm has invested alongside Deutsche Bank in Hotel Arts.

Patron Capital Partners, the London-based private equity firm, has invested alongside the real estate unit of Deutsche Bank in the purchase of the Hotel Arts centre in Barcelona.

While exact financial details have not been disclosed, Spanish newspapers have estimated the deal to be worth around E285m. Certainly it is the largest deal to date for Patron Capital Partners, said Keith Breslauer, managing director at the firm.

The deal is the sixth sale of a large luxury hotel since the terrorist attacks of September 11th, an indication that many private equity firms are taking advantage of depressed trading conditions and consequent lower valuations to be investing in the sector.

Breslauer agreed. He said: “This is the best time to buy a five star hotel because everyone is scared of hotels post September 11, and the Barcelona market is particularly good at the moment. It is a stable economy that has seen enormous infrastructure spending which we regard as growth potential for the future.”

Other investments Patron has completed include the purchase of a small Italian bank based in Milan.