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

22 January 2020 - El Confidencial

Alberto and Pedro Cortina Koplowitz, two of Alberto Cortina and Alicia Koplowitz’s children, have acquired the property on Calle Orellana, 1 in the Justicia district of Madrid.

The building went on the market just over a year ago for between €33 million and €35 million, but the Cortina Koplowitz brothers have snapped it up for a mere €22 million, much to the frustration of the vendor, a Canary Island-based family office.

The property dates back to the beginning of the 20^th century and has a constructed surface area of 3,800 m2, spread over six floors (a semi-basement, a ground floor and four above-ground floors).

It houses two commercial premises and eight homes, which are or have been leased as offices. The property generates annual rental income of €400,000, with a yield of just over 1%, which could well rise significantly if the new owners decide to put up the rent following their planned renovation of the building.  

Original story: El Confidencial (by E. Sanz)

Translation/Summary: Carmel Drake

20 January 2020 - Expansión

Intu’s cull of its assets in Spain continues as it seeks to raise funds to avoid bankruptcy. As at the end of June 2019, the British real estate giant had debt amounting to GBP 4.7 billion, whereas its stock market valuation yesterday stood at GBP 300 million.

Following the sale of its 50% stake in the Puerto Venecia in Zaragoza in December, Intu is now negotiating the divestment of its stake in the Asturian Parque Principado shopping centre, which it owns jointly with CPPIB. The likely buyer is the German fund ECE Real Estate and the expected price around €150 million.

Next in line will be the Xanadú shopping centre in Madrid, which Intu owns jointly with Nuveen Real Estate. That asset is expected to fetch more than €500 million when it goes on the market in the summer. 

Intu also owns several work-in-progress projects across Spain, including a new shopping centre in Málaga. The expectation is that the firm will try to offload that property too as construction progresses.

Original story: Expansión (by Roberto Casado)

Translation/Summary: Carmel Drake