29 January 2018 – Eje Prime
Inditex has found a buyer for its portfolio of stores. The Galician fashion retailer is holding conversations with the German fund Deka Inmobilien to sell the sixteen stores that it put up for sale in December. Both companies are holding negotiations to close the acquisition for €400 million.
The agreement is expected to be closed this week in such a way that the group may include this divestment in its results for 2017, according to reports by El Confidencial. Almost 80% of the value of the portfolio corresponds to the establishments located in Madrid (the Zara store on c/Preciados and the Lefties shop on c/Carretas), Barcelona (the Zara store on c/Pelayo) and Lisbon (Rúa Augusta y Antonio Augusto de Aguiar). The remaining stores are located in Valencia, Córdoba, Albacete, Palma, Sevilla, San Sebastián, Ciudad Real, Zamora, and Fuengirola.
Zara’s parent company has received several offers for its stores. Some buyers were only interested in part of the portfolio and many were mainly interested in the Preciados store. The operation is being brokered by Savills-Aguirre Newman.
Meanwhile, Deka Inmobilien, the real estate investment division of Grupo Deka, is a buyer interested in acquiring assets in good locations, with high profile tenants and long-term contracts. Its operations in recent years include the acquisition of the Diagonal 640 office building in Barcelona for €145 million. Inditex guarantees a five-year rental term with the option of extending for another twenty years and rental prices that offer an average return of 4% for the whole portfolio.
Original story: Eje Prime
Translation: Carmel Drake