Spaniards Top Retail Investment Despite Foreign Equity Flooding

11/11/2014 – El Economista

Spain magnetizes investment and the arrival of international funds undoubtedly gave a tremendous impetus to the country’s real estate market. However, it turns out that the predominant buyers are the Spaniards themselves.

According to a report by real estate advisor JLL, during the first ten months of the year, the Spanish purchased most retail assets, accounting for 32.10% of the total investment.

As Retail Analyst at JLL David Mendez Lopez says, the data shows that local demand for this sort of assets ‘has been reviving investment in our country since the beginning of 2014. The Spaniards are presently pointing at a path to invest in a market bringing better and better returns’. A clue spotted by equity originating from, for instance, Korea, as the experts suggests these investors backed ‘the purchase of the Islazul shopping mall in Madrid by TIAA – Henderson which paid €230 million’.

The U.S. investors rank the second, accounting for 21.06% of the whole investment in the Spanish real estate. Noteworthy and recent transactions were the sales of: the shopping mall portfolio of Vastned Retail to a joint venture led by Baupost Group for €160 million, the Gran Vía de Vigo center (pictured) by Oaktree for €113 million, or the portfolio including the Factory Outlet Nassica in Getafe and the Vista Alegre in Palencia, sold for €92 million.

France takes the third place among the top nations buying retail assets in Spain. Having a 17.63% contribution in the total, the position has been secured by one grand transaction: the acquisition of the 63-shopping-park portfolio for €400 million by Carrefour Property from Klépierre.

Year-to-date, the total equity spent on retail in Spain amounts to €2.26 billion and the forecast is the volume will hit a record €2.7 billion at the end of the year. Not far from the 2006 figures, when the transactions value posted nearly €3.1 billion.


Original article: El Economista (by Alba Brualla)

Translation: AURA REE