23/06/2014 – Expansion
The new investment giant turns to the Spanish real estate. The U.S. fund has just sealed a deal on the Gran Vía shopping center in Vigo, the first acquisition of the investor in Spain.
The 120.000 square meter property (41.000 sqm for commercial purpose) was included in the portfolio CBRE Global Investors bought from the real estate branch of Dutch bank ING in 2011. The three-storey shopping mall was opened in 2006, disposing of another three floors with 1.600 parking spaces.
Acquisition has been assisted by Linklaters and Deloitte advisors and the final price reached €115 million.
Oaktree strives at creating its own Socimi (Spanish REIT firm) and thereby enjoy the tax benefits such a vehicle offers. Also, another U.S. fund Blackstone has recently expressed readiness to convert its affilliate Fidere embracing 1.860 subsidized houses in Madrid into an investment trust.
At the end of the first quarter of 2014, the private equity chaired by Howard Marks had a €63.6 billion worth of assets. Most of its clients (around 75%) come from the United States and Canada. The fund invests in Europe, Asia and Northern America.
The year 2013 concluded with a €3.8 billion investment volume, whereas the Q1 2014 marked €988 million, out of which €183 million corresponded to transactions on CRE. It is expected that this year investment in the Spanish property will reach €5 billion.
Original article: Expansión (by Rocío Ruiz)
Translation: AURA REE