Tander To Invest €25M in Spain’s High Street Sector in 2018

13 February 2018 – Eje Prime

Tander Inversión is looking to get its teeth into the retail high street sector. The Socimi plans to invest up to €25 million in 2018 during which time it hopes to expand to more cities in Spain, with Madrid as the priority. That is according to comments made by the firm’s Director General, Sergi Mirapeix, speaking to Eje Prime. Tander’s objective is to buy between three and four assets during the course of this year.

Owned by a fund in which the Canadian manager Première Alliance holds a stake, the real estate company’s current investments are concentrated in Barcelona, where it owns five assets in prime areas of the Catalan capital. The sixth asset in the portfolio, with which it made its debut on the Alternative Investment Market (MAB) at the beginning of 2018, is located in Santander. When the MAB’s bell rang, the value of Tander’s portfolio amounted to €80.3 million.

Now, the objective of Mirapeix is “to expand our investments in the main cities in Spain”. Some of the locations that the Socimi is analysing include Bilbao, Valencia, Sevilla and San Sebastián, although it is also interested in Málaga and A Coruña.

Meanwhile, in Cataluña, beyond Barcelona, Girona is another city that is in Tander’s line of sight “because it has a high income per capita, above the Spanish average, and it is also an attractive commercial market”, says Clara Casales, administrator of the Socimi’s properties. “Our shareholder is very conservative and seeks very specific assets”, says Mirapeix.

Tander is analysing different operations but has not identified anything yet. In this regard, Mirapeix says that retail high street assets “are a complicated type because, when they are already on the market, they are very burned out, which makes it difficult to obtain the margin that you want”.

The executive also highlights the high degree of competition that exists for these types of properties, especially between family offices, which “have a higher investment margin”, he said.

On the other hand, in addition to expanding to more Spanish cities, Tander’s roadmap could involve expanding and crossing the border within the next few years. “We are going to explore entering Portugal, focusing on Lisbon and Porto”, said Mirapeix, “although, for that, we still need to establish ourselves in Spain”.

Prime stores on Vía Laietana and Paseo de Gracia  

Tander’s current portfolio in Barcelona is located in the most luxurious commercial area of the Catalan capital. The Socimi’s largest asset is an office space at number 6-20 Calle Casp, which spans 3,457 m2. That is home to the offices of Cadena SER, owned by the Prisa Group, just above Teatro Tívoli.

Very close by, at number 15 Paseo de Gracia, the manager owns a retail store spanning 527 m2, which is currently leased to FC Barcelona, which has opened its flagship store there. On the same street, at number 27, the Socimi owns a store measuring 792 m2, which it has leased to the Cos brand, from the H&M group.

Ten minutes towards the sea by foot, Tander completes its portfolio in the central area of Barcelona with part of number 47 Vía Laietana, an office building where the Socimi has leased 1,100 m2 of space to Banco Sabadell. In addition, the financial institution has a branch measuring 155 m2 at number 171 Travessera de Gracia, which is also owned by Tander Inversiones.

Original story: Eje Prime (by J. Izquierdo)

Translation: Carmel Drake