Transaction / AssetsUBS acquires retail gallery from Hispania for €57mm SellerHispania Retail Properties BuyerUBS Asset Management € MM57
UBS-AM acquires retail gallery within Madrid shopping centre for €57m from Hispania Retail Properties
UBS Asset Management’s (UBS-AM) Real Estate & Private Markets (REPM) has acquired the retail gallery part of Las Rosas Shopping Centre in the San Blas district of Madrid, on behalf of a client for €57m from Hispania Retail Properties.
Overall, Las Rosas is the dominant shopping centre in its immediate catchment area, comprising 29,400 m² over two floors. It includes 91 indoor retail units totalling almost 9,300 m² – which UBS-AM have acquired – as well as a Carrefour hypermarket, a Cinesa cinema and 1,800 underground parking spaces. Currently 94% let, the centre is anchored by one of Spain’s top five performing Carrefour stores, with Mango, McDonald’s, Primor, RKS, Springfield, and Foster Hollywood among the property’s other tenants.
San Blas is in the south east of Madrid and provides a high catchment of over 700,000 inhabitants, 167,000 of which are within walking distance, while there is also a Metro station at the entrance to Las Rosas, which sits at the crossing point of Madrid’s major urban and inter-urban arterial routes.
The acquisition brings REPM’s assets under management across the Iberia business to circa €772m. REPM has operated in Iberia, including Spain and Portugal, since 2003 and currently manages seven funds or separate account mandates with a portfolio of Iberian assets spanning the office (57%), logistics (6%) and retail (37%) sectors.
Jesús Silva, Head of REPM – Iberia at UBS-AM, commented: “Las Rosas is a consolidated and dominant shopping centre within its catchment area and is a high performing asset, attracting almost seven million visitors each year and delivering strong average sales figures, which continue to grow. We believe that there is an opportunity to further improve this performance through a tailored asset management plan, while the investment is also reflective of our view that the Spanish economy has a promising future over the medium term. The economic parameters are encouraging and alongside our activity will support our ability to drive returns.”
The vendor, Hispania Retail Properties (HRP), a partnership owned by GreenOak Real Estate amongst others, acquired this center as part of a portfolio deal in 2014. This transaction follows 2016 divestments; the sale of Vistahermosa Retail Park in Alicante and a three asset portfolio deal which closed last summer.