Merlin to Invest €16M Remodelling Porto Pi Shopping Centre (Palma)

15 December 2017 – Última Hora

Merlin Properties, the listed real estate investment company (Socimi) and largest shareholder of the Porto Pi shopping centre, is going to invest €16 million to remodel and improve the asset’s commercial offer.

The Socimi, in which Santander and BBVA hold a stake, has set itself the objective of improving the centre to bring it into line with current tastes in the market.

Sources at Merlin Properties indicate that in the new era of shopping centres, the aim is to attract the greatest number of visitors “for convenience and experiences”.

The Socimi plans to extend the centre’s areas of activity beyond pure shopping, towards experiences. Moreover, it is keen to integrate the centre with e-commerce, through the constitution of a marketplace and by placing Amazon and Correos e-commerce purchase collection points, as well as pop-up stores and temporary outlets.

Merlin Properties estimates that these improvements, together with the management and natural growth of the assets, will allow it to increase its current annual revenues by 22% and to exceed a country-wide turnover figure of €500 million based on all of its planned projects, without having to buy new properties.

Amongst the most important investments are the €21 million that it plans to spend on the complete renovation of the Larios centre in Málaga and the €16 million that it plans to spend on Porto Pi in Palma.

The shopping centre in Palma receives 8.7 million visitors per year. The different phases of the construction work that are going to be carried out will be completed during the first quarter of 2020 (…).

The final objective is to consolidate Porto Pi’s dominant position at the commercial level in Palma with the maximum variety and diversification of products.

Original story: Última Hora (by J. L. Ruiz Collado)

Translation: Carmel Drake

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