Klépierre Is Willing To Invest Another €400M In Spain

16 July 2015 – Expansión

Some “very exciting” years. That is how Luis Pires, the Portuguese CEO of Klépierre’s Spanish division, defines his six years in office.

During this period, the French company, which specialises in shopping centres, has undergone a profound transformation to become one of the leading players in the sector, with 19 properties across the country. “For Klépierre, Spain is a natural market. We entered in the year 2000 with the acquisition of Carrefour’s shopping centres. Now we are very established, with more than a hundred employees and some very dynamic assets. We want to continue growing”, said Pires.

At the end of 2013, Klépierre sold the 126 shopping centres it had bought to Carrefour for €1,900 million; 63 were located in Spain. (…).

In recent years, Klépierre has closed large operations that have converted it into the largest shopping centre specialist in Europe, with assets worth €21,000 million.

Merger with Corio

Last January, following the divestment of those stores, Klépierre purchased one of its competitors, Corio, after launching a takeover bid in October 2014 for €7,200 million. As a result of the fusion of the two groups, the French real estate company became the leader of the real estate sector in Europe, with 178 shopping centres. (…).

The integration also affected Spain, where Klépierre started to manage other new properties, including Príncipe Pío in Madrid and Maremagnum in Barcelona. (…).

The firm’s most recent major transaction in Spain, the purchase of Plenilunio from Orion for €375 million (…), fits perfectly within its strategy to back high profile shopping centres. Following that purchase, Klépierre’s portfolio of retail properties in Spain now comprises 19 premises. And that figure could rise soon.

“We want to expand our presence in Spain. The group is happy with the results in the country and we see potential for growth. If a multi-million euro opportunity presents itself tomorrow, we will go for it, and if we need to invest another €400 million in Spain, then we will”. (…).

During the first half of 2014, sales at its properties in Spain grew by 6.38% on average, with an increase of 9.05% at La Gavia, in Madrid; 10.85% at Nueva Condomina in Murcia; and 9.87% at Ruta de la Plata, in Cáceres.

During the first quarter of 2015, Klépierre recorded revenues of €320.1 million, of which €17.3 million was generated by its Spanish portfolio.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake