25 May 2017 – Expansión
Schroder European Real Estate Trust has announced its first investment in Spain, after signing an agreement to acquire the Metromar shopping centre in Sevilla from UBS Asset Management.
The transaction price amounted to €52.5 million, which implies a future annual return of 6.2%, according to Schroders, based on the rental income generated by the property. The shopping centre’s tenants include Mercadona, Zara, Mango, Cortefiel and H&M. In total, Metromar’s rental income amounts to €4 million per year.
In terms of the structure of the deal, Schroder’s fund has directly acquired a 50% stake and has purchased the other 50% through Inmobilien Europa Direkt, a Swiss investor who is advised by the British manager.
UBS put the Metromar centre up for sale last year after acquiring it for €100 million in 2007, just before the outbreak of the real estate crisis.
According to the new owners of the shopping centre, which has a surface area of 23,500 m2, “Sevilla is expected to exceed the national average in terms of economic and consumer growth over the next five years”.
The operation has been partially financed using a loan amounting to €23.4 million.
This is the ninth acquisition by this Schroders real estate fund. Until now, the fund has focused its operations in France and Germany. Since its launch in 2015, the fund has made investments of €212 million.
“Commerce may be a key beneficiary of the economic recovery in Spain, which means that this acquisition represents a welcome addition to the portfolio, offering significant diversification for investors, as well as increasing our dividend yield”, said Tony Smedley, manager at Schroder European Real Estate Trust.
In recent months, overseas firms have been accelerating their purchases of shopping centres in Spain. For example, the British property developer Intu acquired Xanadú in Madrid; and yesterday, the French firm Klépierre announced its purchase of the Nueva Condomina shopping centre in Murcia for €233 million.
Retail Partners, EY and Gleeds have advised the British manager in its acquisition of Metromar. UBS has been advised by Cushman & Wakefield, Novasa and Ashurst
Original story: Expansión (by Roberto Casado)
Translation: Carmel Drake