2 November 2018 – Eje Prime
Castellana is making changes in Granada. The Socimi owned by the South African fund Vukile is going to merge the Alameda Retail Park and the Kinépolis shopping centre into a new brand, called Granaita, according to explanations provided in a corporate presentation that the firm has distributed to potential investors.
The company, which has been listed on the Alternative Investment Market (MAB) since July, will invest €5 million in the process to reposition and integrate its two shopping centres in Granada.
Castellana is one of the emerging players in the current retail market in Spain, in which it specialises. The objective of the company is to be “the leading Socimi in the retail sector”, adds the company, whose objectives include the optimisation of its asset portfolio. The operation that it is going to carry out in Granada sits firmly within that framework.
The real estate manager acquired Kinépolis in June 2017, through the company Junction Parque Granada. The asset, inaugurated in 2004, comprises eight stores with a gross leasable area of 18,508 m2 and is worth €32.5 million.
Meanwhile, Alameda Retail Park was incorporated into Castellana’s portfolio in December last year. Located in the municipality of Pulianas, in Granada, the park began operating in 2014 and comprises four stores with a gross leasable area (GLA) of 27,256 m2. The monthly rent at Alameda amounts to €10.71 and its market value stands at €55.3 million.
The fund that sustains the Socimi financially, Vukile, is going to inject up to €200 million over the next few years to continue with its plan to conquer the commercial sector in Spain, where it hopes to form a portfolio worth €1.2 billion. Castellana is going to look for new shareholders to inject the resources necessary to carry out this plan, which seeks to enable the Socimi to make the leap from the MAB to the main stock exchange within the next three years.
In pursuit of this goal, Vukile acquired four shopping centres from Unibail-Rodamco for €489 million last summer, which were placed in Castellana’s portfolio, as reported by Eje Prime.
Castellana Properties closed 2017 with revenues of €9.31 million, whilst it registered turnover of €5.15 million during the first three months of 2018. The net result for 2017 amounted to €18.61 million, and the firm earned €6.65 million during the first quarter of 2018. The group’s debt at the end of 2017 amounted to €146 million.
Original story: Eje Prime (By Jabier Izquierdo)
Translation: Carmel Drake