30 November 2017 – Eje Prime
Redevco ends the year with another store up for rent. The fund that specialises in retail has terminated its contract with Zara, the main brand of the Galician giant Inditex, after it closed one of its flagship stores in Madrid, located at number 47 Calle Goya. The store in question has been owned by Redevco for seven years, according to sources at the group, and has a retail surface area of 2,300 m2.
The Pan-European investment fund acquired the premises in June 2010 for €27 million. At the time, it signed a long-term lease contract with Zara, which had operated in the store since 2005. The fashion chain, which closed its doors on 27 November, will continue to operate in the area from its stores located at number 23 Calle Serrano and number 16 Calle Conde de Peñalver.
Inditex’s main chain has great penetration in the Spanish market. Currently, the chain operates more than 2,236 stores all over the world, of which 434 are located in Spain, as at the end of the first half of 2017.
Zara’s departure from the premises will allow Redevco to renegotiate the rent with a new operator. Currently, the average rental price for a store on this shopping street is €120/m2/month, with maximum rents reaching €170/m2/month. Calle Goya has almost 100 shops and an average return of 4.8%.
Redevco manages almost 50 real estate assets in Spain and Portugal, worth €800 million. The company, led in Spain by Israel Casanova, who sits on the fund’s management board, and Jordi Soriano, Director of the asset portfolio, employs a team of 17 professionals.
In recent months, the group has strengthened its team in Spain. In March, the company appointed José Carlos Torres, formerly of Aguirre Newman, as the new Head of Investments for the group to lead the fund’s acquisitions team in Spain and Portugal (…).
The fund, which manages more than 173 rental contracts across the Iberian Peninsula, has more than 300,000 m2 of retail space under management. Redevco is clearly focused on the acquisition of commercial opportunities and on the administration and management of assets for third parties (…).
Around the world, Redevco manages a portfolio of more than 400 assets located in the main shopping areas of Germany, Austria, Belgium, Spain, France, Hungary, Luxembourg, The Netherlands, Portugal, the UK and Switzerland (…).
Original story: Eje Prime (by Custodio Pareja and Pilar Riaño)
Translation: Carmel Drake