Redevco & Ares Purchase 70% of Parque Corredor Shopping Centre

2 February 2018 – Expansión

Yesterday, after more than a year and a half of negotiations, Redevco Iberian Ventures – the joint venture formed by Redevco and Ares – closed the purchase of 70% of Parque Corredor (located in Torrejón de Ardoz, Madrid) for €140 million. The new owners are preparing to give the asset a makeover, with an additional investment of €40 million, which will be used primarily to renovate the asset. Until now, Parque Corredor had a very fragmented ownership structure (…) and although the asset has an occupancy rate of 95% and receives more than 10 million visitors per year, investment is required for its repositioning.

With the completion of this operation, which has been advised by Deloitte, Cushman & Wakefield and Simmons & Simmons, Redevco Iberian Ventures has acquired the 40% stake held by Sareb – the largest shareholder until now -; the 14.5% stake held by Aermont (previously Perella Winberg); the 3.6% stake held by El Corte Inglés; and the 3% stake held by Bowling, as well as almost 10% held by smaller shareholders. On the other hand, Alcampo will retain its 24% stake in Parque Corredor, as will the Town Hall of Torrejón de Ardoz, which owns a municipal court there, and Toys R’ Us.

Parque Corredor is the third largest shopping centre in the Community of Madrid, behind Xanadú and Parquesur, and one of the largest in Spain, with a surface area of 123,000 m2 and 3,800 parking spaces. In the past, the centre was controlled by CatalunyaCaixa, which foreclosed a loan that had been granted to Testa. That stake was subsequently passed onto Sareb.

The new owners plan to reposition the shopping centre, which opened its doors in 1996. Redevco and Ares plan to spend €40 million on the complete renovation of the asset, which will be undertaken in stages and will not result in the temporary closure of the shopping centre. The remodelling plan, approved in July last year by the community of owners of the centre, is supported by the tenants.

Renovation

The proposed renovation will involve increasing the size of the stores so that some of its main tenants can open flagship stores there and making the leisure area more attractive to increase the number of visitors. The renovation work may take between 12 and 18 months. Parque Corredor is home to 180 establishments, an Alcampo supermarket measuring 24,000 m2 and nine cinema screens managed by Cinesa. Currently, the fashion and accessories section accounts for 24% of the shopping centre, with tenants such as Primark, H&M, El Corte Inglés, Sfera and Mango, amongst other brands. Next comes the Alcampo hypermarket (24%), the restaurant area (14%), leisure (10%), services (9%) and food, perfume and cosmetics (9%).

Competition

Inside Parque Corredor’s area of influence, the French firm Compañía de Phalsbourg plans to open the Open Sky shopping centre, measuring 85,000 m2. The construction work on that centre started in October last year.

Redevco Iberian Ventures, created in September 2015, acquired the Mercado de San Miguel in Madrid last summer for €70 million. In addition, last year, the joint venture company sold a portfolio of nine shopping centres to Vukile Property Fund, a company listed on the Johannesburg Stock Market (South Africa) through its Socimi Castellana Property for €193 million.

The company owned by Redevco and Ares has funds amounting to €500 million allocated for identifying and acquiring assets.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

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