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retail-shopping-centers Market News: Spanish Real Estate Intelligence

Ores Buys Two Assets Spanning 8,000m2 in Madrid

12 February 2018 - Iberian Property

A few days after investing €86 million in the purchase of 6 commercial assets in Portugal, Ores Socimi (owned by Sonae Sierra and Bankinter) has bought two plots in Mejorada del Campo, Madrid, for €6.6 million. The two assets cover a surface area of 8,000 m2 and are both leased to Mercadona, which operates a supermarket on both plots, according to Eje Prime. In a statement sent to the MAB, the Socimi explains that "the Company continues to meet the investment objectives set out in its business plan, in accordance with the financial parameters committed to its shareholders". The operation was financed exclusively through equity capital.

Original story: Iberian Property (by Ana Tavares)

Edited by: Carmel Drake

 
Sonae Sierra & CBRE GI Put the 'Max Center de Barakaldo' Shopping Complex Up For Sale

10 February 2018 - El Correo

Bizkaia is preparing for a major commercial and real estate revolution. Sonae Sierra, the multinational owner of the Max Center shopping complex in Barakaldo has put the property up for sale, 15 years after acquiring it from ING Real Estate. The property was opened in 1994 and was extended in 2002 with the addition of the adjoining Max Ocio building. The latest transaction forms part of a national macro-operation, given that the portfolio up for sale also includes two other large complexes: the Gran Casa de Zaragoza and the Valle Real de Santander.

The company, together with its partner CBRE Global Investors, with whom it jointly shares the ownership of the three large shopping centres, calculates that it will receive proceeds of around €500 million from the sale, according to sources in the sector. Spokespeople for Sonae avoided providing further details about the operation to this newspaper on Thursday. They announced that they only discuss “closed” operations and that the installations in Kareaga, which have an approximate surface area of 60,000 m2 “are still operating in a normal way”.

Nevertheless, the negotiations have been underway for several months. Although they are satisfied with the progress of the business, which is enjoying growing sales and which seems to have left behind the worst years of the crisis, the current owners are looking to generate revenues from the sale of these assets to invest in other projects in different parts of Spain. Sonae Sierra, which is controlled by Hugh Grosvenor, the Duke of Westminster and the richest man in the United Kingdom, has a presence in seven countries with 46 buildings worth almost €7 billion. It is currently working alongside the British operator McArthurGlen on the imminent opening of a luxury outlet in the Plaza Mayor de Málaga complex, which will involve a disbursement of €140 million.

The company is looking to take advantage of the current times in the Spanish real estate market, which are being characterised by a great deal of interest from funds and overseas companies. Last year, investment in the retail sector rose in a spectacular fashion – by 31% - to reach €3.9 billion. If this latest sale goes ahead, the owners of the Max Center, which is home to 133 stores, as well as a sizeable restaurant and leisure area, would complete their second divestment process in Bizkaia in two years.

At the beginning of 2016, they sold the Zubiarte de Bilbao complex to Activum SG Iberia Fund for €150 million (…).

Modernisation of its roof

Now, all eyes are focused on the Max Center, which has just invested €3.5 million on the modernisation of its roof. Nevertheless, the improvements are not going to stop there, given that the complex is soon going to be subjected to a complete renovation. The changes undertaken in recent months to renew the roof of the building, which houses a parking lot, included the resurfacing of the surface area and its signage, as well as improvements to the lighting and security in the parking area.

In addition to the successive renovation projects, the Max Center has also improved its sustainable profile with several actions aimed at reducing water consumption, improving energy efficiency and increasing recycling rates. Together with these interventions, management has been working on an intense campaign to increase the commercial offering and renew the trust of its customers who are being offered increasingly more choice by nearby competitors, such as Megapark and Ballonti (Portugalete). Some of the new brands that have chosen the Max Center and are about to open stores there include Pablosky, Indie&Soul, San Carlos, Trendie, Loop&Coffe and Burger King. Meanwhile, other stores, which are already established, such as the footwear shop Foot Locker, have undergone major renovations.

Original story: El Correo (by Luis Gómez)

Translation: Carmel Drake

 
Savills Aguirre Newman: Tertiary RE Transactions Soar in January to Reach €910M

6 February 2018 - Eje Prime

The sales of the Parque Corredor shopping centre in Madrid and the 16 Inditex stores in Spain and Portugal have boosted the sector, which has already registered 40% of the total amount invested during the first quarter of 2017.

Operations in the retail segment have stepped up a gear. The Parque Corredor shopping centre in Madrid, and the portfolio of stores that Inditex put up for sale in Spain, represented a boost for the investor boom in the sector during the first month of the year. In total, those two operations accounted for €660 million of the €910 million that was spent on the sale and purchase of non-residential real estate assets in Spain during the month of January.

For the Inditex portfolio, which contained 16 stores located across Spain (14) and Portugal, the German fund Deka paid more than €500 million. That transaction was followed by another major retail deal, specifically, the purchase by the joint venture between Ares and Redevco of 70% of Parque Corredor, whereby absorbing the 40% stake in the centre that Sareb held, for €140 million.

Thanks to those two sales and others that were closed during the first month of 2018, the investment quota for the year has already reached 40% of the total figure spent during the whole of the first quarter last year, according to data from Savills Aguirre Newman.

Following a month of considerable activity, the forecast for the rest of 2018 is optimistic. Sources at the consultancy firm predict a year of “significant investment”. In this way, the volume of operations forecast for the office sector could exceed €2.0 billion, after investment in that segment amounted to €210 million in January.

Original story: Eje Prime

Translation: Carmel Drake