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Aguirre Newman Sells Portfolio Of Retail Premises For €40M

19 October 2016 – El Confidencial

Less than six months after putting its portfolio of retail premises up for sale, Aguirre Newman has reached an agreement to sell the jewel in the crown: the 14 assets that it owns in Madrid.

According to several sources familiar with the deal, the real estate consultancy has reached an agreement with a Madrilenian family office to close the sale for almost €40 million. With this move, the buyer will acquire a portfolio of assets located, above all, on the Spanish capital’s main high streets.

This lot forms part of the Zaphir real estate fund, which engaged Arcano to organise a formal sales process of 32 retail premises located in several provincial capitals, for a total amount of €80 million.

Nevertheless, during the negotiations and thanks to the attractive offer received for the Madrilenian assets on their own, Aguirre Newman has decided to sell these assets in one lot and to divest the other assets in smaller separate operations.

The portfolio of retail premises in Madrid has an average historical occupancy rate of almost 90% and enjoys a diversified profile of tenants, ranging from giants such as Zara Home, Vips, Trussardi, Cortefiel and Punt Roma to popular corner shops (typically run by Chinese families).

Madrid accounts for 56% of the rental income from this portfolio thanks to the fact that it contains high quality premises such as the store located at number 82 on the sought-after Calle Serrano, which is houses to a Trussardi shop.

Zaphir’s divestments

The sale of these retail premises forms part of Zaphir’s divestment process. The fund also reached an agreement with Neinver and Colony at the beginning of this year to sell them some logistics assets for €87 million.

The recovery in consumption has reawakened investors’ appetite for high street premises, as we saw in 2015, when they invested more than €1,200 million in retail premises, significantly exceeding the historical investment volume in the segment.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake