El Corte Inglés Reduces the First Phase of its RE Sales Process to €1bn

29 March 2019 – El Confidencial

El Corte Inglés is refining the plan for its real estate divestment strategy. After hiring Javier Catena as the new Director of Real Estate, the group has decided to sell off its assets in phases and will begin by activating the sale of 95 assets, from an initial perimeter of 130.

The department store giant has engaged PwC to open the tender process for investors, with the aim of receiving final offers by the end of April.

The revised portfolio includes 14 commercial premises, 16 plots of land and 65 assets of various types, such as flats and parking spaces, which together span a total surface area of 1.2 million m2 and which are primarily located in Madrid, Barcelona, Málaga and Sevilla.

Investors may bid for all or part of this first portfolio, or even for specific assets only. Most of the properties for sale are being offered with the option of a sale and leaseback arrangement, whereby the vendor would remain as the tenant following the sale.

By reducing the perimeter of this first phase to 95 properties, ECI has decreased the proceeds that it expects to receive from RE sales this year to €1 billion, compared to the figure of between €1.5 billion and €2 billion that it had announced in December.

Original story: El Confidencial (by R. Ugalde)

Translation/Summary: Carmel Drake

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