TH Real Estate Negotiates With Intu To Buy 50% Of Xanadú

21 April 2017 – Expansión

Intu has found a partner for its mega-investment in the Madrilenian shopping centre Xanadú, which it purchased from Ivanhoé Cambridge in March for €530 million. Specifically, the British fund is holding advanced negotiations with TH Real Estate to transfer it 50% of the shopping centre.

According to sources in the market, TH Real Estate, which bid for the asset by itself in the tender, has engaged Cushman & Wakefield to advise it in this operation. The fund manager declined to make any comment about the deal.

The purchase of Xanadú by Intu was partially funded through a five-year loan from Santander, BBVA, Credit Agricole and CaixaBank, amounting to €263 million. Intu contributed the rest of the investment using its own funds.

The shopping centre, excluding the management company and the Snowzone, was valued in February this year at €526 million, which represents an initial net return of 4.4%.

The asset, located in the Madrilenian municipality of Arroyomolinos, sparked interest amongst several investors, although only Intu and TH Real Estate reached the final round, and the latter may now become an ally in the deal anyway.

The purchase of Xanadú represented the largest operation involving a shopping centre in the history of the market in Spain, ahead of the €495 million that Deutsche Bank paid for Diagonal Mar (in Barcelona) in August, the €451 million that Intu paid for Puerto Venecia (Zaragoza) and the €375 million that Klépierre paid for Plenilunio (Madrid).

Xanadú, constructed in 2003, is currently home to more than 220 establishments. It has a surface area of 153,000 m2 and 8,000 parking spaces. The shopping centre – one of the largest in Spain – receives almost 13 million visitors per year and generated sales of around €230 million last year.

Original story: Expansión (by R. Arroyo and R. Casado)

Translation: Carmel Drake

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