Meridia partners with residential operator Caterina

Corporate | Real Assets | 23.05.2023

Meridia Capital Partners, SGEIC, S.A. ('Meridia'), through its investment vehicle Meridia IV, has acquired a majority stake in residential operator Caterina House Property Management ('Caterina'), specialised in corporate apartment rentals. The agreement has two objectives: on one hand, to invest in a scalable program in Spain in this asset class, where Caterina will oversee the operational management, and Meridia will participate as owner of some assets in the portfolio. And, on the other hand, to support Caterina's expansion through a direct investment, the company already operates 16 buildings, owned by different landlords, in the most relevant business areas of Madrid, Barcelona, and Málaga, and it aspires to become a reference operator and a management solution for many residential building owners.

The corporate residential sector in Spain is an alternative segment that covers a growing need for professionals on medium-term assignments. Despite high demand, there is a limited supply, as quality offerings are poorly consolidated in main cities.

Caterina was founded in 2021 by Manuel Vidal-Quadras and a group of managing partners, who will continue to oversee the operation. Caterina's housing solutions targets professionals working on temporary projects or participating in medium-term relocations in economically and business-leading cities. They are provided with a fully furnished home in prime locations and optimal service. This model enhances the tenant's identification with the accommodation, ensures better asset conservation, reduces operational and maintenance expenses, and increases overall profitability in terms of investment, expenses, income, and unexpected events.

This acquisition, one of the latest investments within Meridia’s Real Estate fund Meridia IV, marks the entry of the vehicle into the residential sector. Launched in 2019, Meridia IV reinforces its commitment to scalable Real Estate platforms with a high operational component, such as its glamping program with operator wecamp.

Víctor Iborra, Real Estate Partner at Meridia, commented: "With our investment in Caterina, we are entering a segment that we believe has great potential. The scarce supply in our country and the sector's fundamentals provide us with a great opportunity to continue scaling this project. At Meridia, we are increasingly focused on creating value in Real Estate through transactions with an operational component. We are proud to have partnered with a company like Caterina, with a proven track record in accommodation management, and we hope it grows to become a national reference."

Manuel Vidal-Quadras, Co-Founder of Caterina House, added: "We couldn't think of a better partner than Meridia to participate and scale Caterina House, which we started two years ago. Meridia has an extensive and established track record as a highly institutional Real Estate investor. With their support, we hope to continue growing and adding value to this high potential segment in Spain. The strength of this medium-term accommodation model will grow in the future as technological solutions allow companies to expand relocations and diversify their processes."