The Italian-Spanish hospitality group Serra has announced that it has reached an agreement with a European banking group for an initial investment of 50 million euro, in the sector of second homes in holiday resorts. The initiative, which was launched in 2021, arose from the observation that there was a market vacuum to fill. “Serious and reliable real estate operators in holiday resorts such as Ibiza, Palma, Mykonos, Porto Cervo, etc., can be counted on one hand’s fingers,” says managing partner Giovanni Serra. “Anyone who had to deal with operators in these vacation resorts would sooner or later have had an unpleasant surprise. Professionalism [in those places] is scarce. Real estate brokers and advisors are often young people improvising and trying to make a buck. From this observation, I founded two companies, Hortensia Real Estate and Iris Services, which in a short time grew to international standards. As a natural consequence, certain institutional investors, such as the investment bank with which I just entered a 50-50 partnership, are now investing with me.”
But for Serra the truly important project is the investment fund that he and his partners are now launching. The Resorts Investment Fund, is designed to give his customers the opportunity to participate in the financial results that have been obtained in these locations.
Serra’s fund expects to raise 250 million, and leverage an additional 100 million. The expected return on investment is projected at just above 20%. “Take Ibiza, for example,” continues Serra “through my investments there, I have returned my clients a 75% net after taxes, over the last three years.”
Are Serra’s words only wishful thinking or concrete predictions? According to certain big names in the world of football, those who have invested with him have obtained excellent results. It is also true that smart working is increasingly widespread and with Covid many families have moved permanently to Ibiza or other similar pleasant places to work and live.
Serra’s is a success story. The one of the classic ‘self-made man’. From the Italian region of Emilia, he moved to the Balearic Islands over ten years ago, and has gradually gained the trust of a high-end clientele, including many football players and VIPs. For many he has become a trusted advisor regarding local real estate investments. “I would like the Resorts Investment Fund to give my customers (who often are also close friends) a good income year on year, but also the opportunity to use the assets (villas, cars, boats, apartments, etc.) for their holidays. But above all, I want it to be an end-of-career pension fund,” explains Serra. “Statistics tell us that over 75% of footballers, 5 years after having stopped playing professionally, have burned through all their savings. This is often due to an excessive standard of living, and to dishonest advisors who think only of their own interests and recommend investments that are somewhat absurd.”
“Furthermore,” continues Serra, “current players often change teams and therefore city. Every time they therefore find themselves starting from scratch and in need of a new home, school for the children, chefs, nannies, etc… . They are often forced to pay in excess for these necessities while their football clubs have neither the time nor the structures to guide and protect them. The same, if not worse, can be said for professionals in the music or film industries.”
“The group of companies that I have built is focusing precisely on these cornerstones: income and services. I follow my VIP clients wherever they go, offering them 24/7 international concierge assistance.”