17 October 2017 – Observatorio Inmobiliario
TH Real Estate has purchased the hypermarket premises in the L’Aljub Shopping Centre in Elche, from Eroski, through its investment vehicle SEVA (Southern European Value-Add Mandate) for €18.7 million. SEVA is a vehicle managed by TH Real Estate for the investors TPG Real Estate and Partners Group, focusing on value-added investments and returns within the retail sector in Southern Europe. Including L’Aljub, this vehicle includes three assets managed in Spain and Italy, worth more than €300 million.
This investment in L’Aljub involves 9,900 m2 of space corresponding to the hypermarket, as well as 4,500 m2 of space occupied by Primark and a 200 m2 petrol station, operated by Eroski.
TH Real Estate is planning to carry out improvements at the property. Eroski will continue as the tenant and will undertake a restructuring of the space, which will reduce the hypermarket space to 5,100 m2. That will free up approximately 4,800 m2 of leasable space for the entry of new operators, whereby expanding the shopping centre area, which currently receives more than 7 million visitors per year, on average.
The L’Aljub shopping centre, which is owned by TH Real Estate, has a constructed surface area of 43,000 m2 and contains more than 100 stores. It is home to many of the major fashion, leisure and restaurant brands, such as H&M, Inditex, Primark and ABC cinemas. It is located in the city of Elche, 20km away from Alicante and 50km from Murcia, which makes it a strategic enclave on the southern axis of the Mediterranean Arc.
“We are very happy with the completion of this transaction and we are hoping to carry out the activities and remodelling work necessary to equip this asset with greater added value, as well as promote the incorporation of new operators, which will be very positive for clients visiting the centre”, said Marta Cladera de Codina, Director of TH Real Estate for the Iberian Peninsula.
Original story: Observatorio Inmobiliario
Translation: Carmel Drake