Project Green: More Details about El Corte Inglés’s Property Divestment Plan

2 April 2019 – El Confidencial

More details have been revealed about the real estate portfolio that El Corte Inglés put up for sale last week. According to information presented in the blind teaser prepared by PwC, the portfolio known as Project Green includes 95 non-strategic assets and spans a constructed surface area of 998,000 m2 with another 228,000 m2 in available land.

The portfolio is split into three completely separate blocks. The first comprises 11 shopping centres. The second comprises three office buildings and 65 other assets, including 5 more shopping centres, located across six provinces. The third contains 16 plots of land, with the aforementioned combined surface area of 228,000 m2.

According to the teaser, 50% of the shopping centres, offices, parking lots and premises contained in the portfolio are concentrated in Madrid, Barcelona, Málaga and Sevilla.

Moreover, the department store giant has expressed its willingness to remain as the tenant in 11 of the 16 shopping centres for between three and five years, although that period is regarded as too short by experts given the incompatibility of the properties with other uses (they have no windows, and so, are unsuitable for use as hotels or hospitals).

ECI has also said it would be willing to continue in two of the office buildings. Another block is leased to a third party for a gross annual income of €1.6 million and there are eight other premises whose rental amounts to €1.8 million.

Original story: El Confidencial (by Agustín Marco)

Translation/Summary: Carmel Drake

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