10 May 2017 – Expansión
Axa Real Estate, the real estate arm of the French insurance company, and Sonae Sierra, are emerging as the likely new owners of the Área Sur shopping centre. The companies are negotiating with Union Investment Real Estate GMBH – the current owner of the asset – to acquire this shopping centre, which is located in Jerez de la Frontera (Cádiz).
Market sources have indicated to Expansión that the transaction may be closed soon for a price of around €110 million.
Following the operation, Sonae Sierra – which specialises in the investment, development and management of shopping centres – will manage the shopping centre.
Área Sur was inaugurated in November 2007 and has a gross leasable area of 47,607 m2. Moreover, the shopping centre has around 2,300 parking spaces.
The operation, which has been advised by the consultancy firm Cushman & Wakefield, is another example of the interest in the market for shopping centres. Following a record-breaking year in 2016, investments during the first quarter of this year have exceeded €1,000 million, boosted by deals such as Intu’s acquisition of Xanadú for €530 million.
The shopping centre receives 6.6 million visitors per year, which represents an average annual growth rate of 5% since it opened. The shopping centre’s gross revenues amounted to €7.8 million in 2016.
Área Sur is located near to Luz Shopping, which was inaugurated in October 2010 and which has a total surface area of 174,000 m2. That shopping area is home to stores such as Ikea, Decathlon and Worten.
The Área Sur property, which has been managed by Auxideico since 2011, has three storeys. The first floor, which has a surface area of more than 23,400 m2, is home to numerous fashion brands and its tenants include Zara, Primark, H&M, Massimo Dutti, Cortefiel, Sfera, Bershka, Pull & Bear, Springfield, Stradivarius and Okeysi.
The top floor, which spans almost 10,000 m2, houses leisure and restaurant brands, as well as an 11-screen Yelmo cinema. Meanwhile, the ground floor, measuring 14,200 m2, is leased to Mercadona, Primark and El Corte Inglés.
In its area of influence, Área Sur competes with the Las Dunas shopping centre, in Sanlucar de Barrameda, with a gross leasable area of 75,000 m2; El Paseo, located in Puerto de Santa María, with a gross leasable area of 33,000 m2; and Bahía Sur, in San Fernando, with a gross leasable area of 59,000 m2.
Original story: Expansión (by Rebeca Arroyo)
Translation: Carmel Drake