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KKR Debuts in Spanish Real Estate Sector

25/01/2014 – Expansion

The U.S. investment company KKR (Kohlberg Kravis Roberts) is closing its first real estate acquisition in Spain via an agreement with developer British Land on two last real assets of the English real estate on the Spanish market:  the Nassica shopping center in Getafe (Madrid) and the Vista Alegre business park in Zamora.

The agreement between the companies is full (…) and the purchase will be formalized in upcoming days, due diligence included. The total price of the properties oscilates between 90 and 100 million Euros.

The company has not shown any particular interest in the Spanish property by now (…). Last summer, Nat Zilkha, managing partner of the KKR offices in London, said that his company will target at the construction, immovables and hotels (…).

The acquired assets are of diverse nature. On one hand, Nassica is a center of great size with space covering more than 95.000 square meters, the rental area (SBA) of 50.200 square meters and 4.000 parking spaces. If it comes to Vista Alegre, the establishment is the only commercial unit in the Zamora province. It disposes of SBA of 15.950 square meters divided among 18 medium spaces, like Aki Bricolaje, El Corte Inglés´s center of Opportunities, hipermarket Froiz, Sprinter, Visionlab and Kiabi, among others.

The transaction has been advised by CBRE on the part of British Land and by Deloitte on the part of KKR.

Divestments

The transferred centers were acquired in 2009. The sale of both properties to KKR has been a part of a divestment process that the British developer is trying to complete all over the continental Europe. In May 2012, British Land sold the Nueva Condomina shopping center in Huelva, swapping the asset with BNP Paribas for debt. The transaction price was set at 200 million Euros. Five years earlier, the group paid between 300 and 350 millions to Eroski and Trusam.

In October, the British group sold 50% of the Puerto Venecia shopping mall in Zaragoza. For the holding it demanded 144,5 millon Euros from Orion Capital that owned the rest of the center.

After the purchase of the first three centers, KKR is planning to conduct new real estate investments in offices, hotels and commercial property. Last year, the company invested 320 million Euros in Uralita by buying its debt. Moreover, it bought 49% of the Port Aventura theme park in Tarragona, for between 140 and 170 millon Euros.

Source: Expansión

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