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TIAA Henderson Acquires the Islazul Retail Park For €230 Mn

27/10/2014 – Expansion

TH Real estate, management company created as a fusion of Tiaa Creff and Henderson Global Investors, has been negotiating on the purchase with fund Ivanhoe Cambridge since late summer.

Finally, its offer outbid other proposals submitted by bidders like Hines or the fund of HSBC.

The Islazul shopping center has 265.000 square meters of built area and 90.000 square meters of GLA (gross lettable area). This is the second largest retail park in Madrid and one of the most popular as it generates 12-15 million euros annually.

Together with the purchase, TH Real Estate manages a €900 million worth of assets on the Iberian Peninsula. Among its commercial properties in Spain, notable are the Nervion Plaza in Sevilla and the Espacio in La Coruña. Besides, the firm owns two shopping parks in Fuengirola and Vigo, a hotel in Malaga and a logistics hub in Alovera (Guadalajara).

Quebec & Lar

Opened in 2008, the property has been included in the portfolio developed jointly by Ivanhoe Cambridge (belonging to bank Caisse de Dépôt et Placement du Québec) and Spanish real estate firm Lar. To set the ball rolling, the partners put €350 million in total.

Earlier this year, first attempt to sell the shopping center ended up in fiasco as the maximum price obtained was €185 million, submitted by Orion, an amount that was rejected by Ivanhoe expecting at least €200 million for the unit.

The operation is a sampling of the huge interest of investors in real estate assets for rent and, above all, in shopping malls.

Thus, out of the total of €5.67 billion invested in the property market during the first nine months of 2014, more than €2.7 billion was spent on Commercial Real Estate (CRE), as per data of advisor CBRE.

Big foreign investment funds and Socimis (Spanish counterparts of REIT vehicles) lead in the year-to-date acquisition volume. In fact, one of the listed trusts, Merlin Properties, has conducted the 2014 largest transaction on the Marineda shopping park in La Coruña, paying €260 million for the property. Furthermore, Socimi Lar España has spent €148 million on three shopping centers.


Original article: Expansión (by R. Ruiz)

Translation: AURA REE