Tag: Alcampo

Alcampo’s RE Arm Buys Ábaco Cinema Building In Logroño

3 August 2016 – Larioja.com

The real estate arm of Auchan Holding, the firm that owns the Parque Rioja shopping arcade and Alcampo, has purchased the Ábaco cinema building in Logroño from Sareb, which owned 87% of the property, together with the Instituto Valenciano de Finanzas (IVF), owner of the remaining 13%.

The deal was confirmed yesterday by the so-called “bad bank” on its website. Sareb, which does not engage in any direct sales, has managed this operation through Servihabitat and Solvia, according to sources.

The Ácbaco building, which used to house 14 cinema screens and eight retail premises, has a constructed surface area of 9,373 sqm.

Sareb has not provided any figures, but all indications are that the total consideration amounted to €3.8 million, with the Valencian organisation receiving its corresponding share. (…).

Original story: Larioja.com (by María José Lumbreras)

Translation: Carmel Drake

Deutsche Bank Buys Diagonal Mar For €495M

2 August 2016 – Expansión

Yesterday, Deutsche Bank completed the purchase of the Diagonal Mar shopping centre from Northwood for around €495 million, making it the largest shopping centre transaction in the history of the Spanish market.

In this way, although the final price has been adjusted downwards with respect to the non-binding offer presented by the entity (which valued the asset at €505 million), it still exceeds the €451 million that Intu Properties paid for Puerto Venecia (Zaragoza) and the €375 million that Klépierre spent on the acquisition of Plenilunio (Madrid).

The operation also generates significant capital gains for Northwood, which acquired the property from the Irish bad bank Nama for €150 million in 2015. CBRE has advised this operation on the sell-side, whilst Deloitte advised the buy-side.

Background

The shopping centre, located in district 22@ in Barcelona, has passed through many hands since the real estate company Hines was awarded the mixed use project at the end of the 1990s. The project included a residential area, offices, hotels and a large shopping centre, with a constructed surface area of 100,500 sqm and a gross leasable area (GLA) of 87,000 sqm, as well as 5,000 parking spaces.

In 2002, the German investment fund Deka paid around €240 million for the property, which, was subsequently sold, in 2006, to the Irish investment group Quinlan for €300 million, in its first operation in Spain. Nevertheless, following the burst of the Irish bubble, the asset was taken over by the banks.

Three years after that operation and in a very different economic environment, the property has generated a lot of interest. Specifically, 18 candidates submitted non-binding offers for the property, including Axa, Invesco, Hines, Unibail, the Singapore sovereign fund GIC, Blackstone and the Socimi Merlin, which was the only Spanish company that submitted an offer, for less than €450 million. Only four candidates participated in the final phase: CBRE Global Investment, ECE, Henderson TH and Deutsche Bank.

In order to reposition the asset, Deutsche Bank plans to invest €30 million over four years in a project that includes restructuring the top floor of the shopping centre to create more space for high-end fashion brands (€15 million), refurbishing the other floors with a budget of around €8 million and renovating the centre’s exterior façade for almost €7 million.

With this renovation, the purchaser expects to strengthen Diagonal Mar’s competitive position and increase its gross operating profit (EBITDA) over five years from €20 million in 2015 to more than €26 million.

Impact

The shopping centre, opened in November 2001, was designed by Jean-Louis Solal and the architect Robert A.M. Stern. Diagonal Mar is located in a prime spot, approximately five kilometres north east of the city centre. With more than 200 outlets dedicated to fashion, restaurants, leisure, a bowling alley and other services, the centre has 4,800 parking spaces and an outdoor space: La Terrassa del Mar. Diagonal Mar received 16.7 million visitors last year, up by 2.3% and generated net sales – excluding Alcampo (which falls outside of the transaction perimeter) – of €210 million, up by 8.5%. (…).

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Lar Acquires Vistahermosa Shopping Centre For €42.5M

20 June 2016 – Efe Empresas

The real estate investment company LAR España Real Estate (LRE) has acquired the Vistahermosa shopping centre, in the province of Alicante, for €42.5 million, as reported to Spain’s National Securities Market Commission (CNMV).

The Vistahermosa shopping complex has a gross surface area of 33,550 sqm and is home to several high profile brands including Alcampo, Leroy Merlin and Media Markt.

The Chairman of Lar España, José Luis del Valle, highlighted that the purchase of the shopping centre “strengthens the quality of Lar’s portfolio” and increases its presence in the Mediterranean region, “one of the most attractive areas in Spain”.

Forecasts show that by the end of this year, the complex will receive 6 million visitors per annum.

Following the acquisition, the value of Lar España Real Estate’s assets amounts to €1,003 million, spread over ten autonomous regions. Of the total, €728 million relates to the acquisition of thirteen retail premises; €150 million to the purchase of four office buildings in Madrid and one in Barcelona; €70 million relates to four logistics assets in Guadalajara and one in Valencia; and €55 million corresponds to a residential asset in Madrid.

Original story: Efe Empresa

Translation: Carmel Drake

TH Real Estate Offers €450M For Diagonal Mar

14 June 2016 – Expansión

The owner of the shopping centre Diagonal Mar, the British fund Northwood, has received a binding offer amounting to €450 million from TH Real Estate. This amount almost triples the €160 million that Northwood paid for the Barcelona-based shopping centre in 2013.

It is not the only offer that has been presented, given that TH Real Estate’s proposal was accompanied by two others from funds whose name has not been revealed. The sale of the asset is being brokered by the consultancy firm CBRE, which has declined to comment on the deal, along with TH Real Estate.

Diagonal Mar is the largest shopping centre in Cataluña, with a surface area of 87,500 sqm. Nevertheless, not all of the property is up for sale, given that 27,000 sqm are owned by Alcampo (which will hold onto its space).

Northwood acquired the centre at the worst time of the crisis, in 2013, from the Irish bad bank, which means that it could end up generating capital gains of €290 million in less than three years.

The investor

TH Real Estate is owned by the financial services provider TIAA. The origin of the company dates back to the London-based real estate manager, Henderson Real Estate, which was absorbed by the US group TIAA in 2014 to create TH Real Estate, which is also headquartered in the USA.

TH Real Estate manages real estate assets all over the world, covering 26,800 sqm, for around 50 investment funds and other operating mandates.

As well as TIAA’s assets in the USA, this platform integrates properties worth €83,900 million in total, which makes it one of the largest property managers in the world.

In Spain, TH Real Estate owns several shopping centres, including Islazul, in Madrid, measuring 90,000 sqm; Nervión in Sevilla, measuring 25,000 sqm; and Bulevar Getafe in Madrid, measuring 27,150 sqm. It also owns an industrial park in Alovera (Guadalajara) measuring 42,000 sqm.

The company has been present in Spain since 2007 and its Madrilenian headquarters is headed up by Manuel Martín. In recent years, as well as investments in operating assets, TH Real Estate has also undertaken co-investment projects, such as in the case of the Viladecans outlet (in Barcelona), where it joined forces with Neinver.

Original story: Expansión (by Marisa Anglés)

Translation: Carmel Drake

Northwood Puts Diagonal Mar Shopping Centre Up For Sale For €500M

9 May 2016 – Expansión

The US investment firm Northwood has put the Diagonal Mar shopping centre in Barcelona up for sale, for an estimated price of €500 million, according to sources close to the deal.

CBRE, the agency responsible for the management and leasing of the shopping centre since it was opened in 2001, has been appointed to manage the sale. Sources at the real estate consultancy declined to make any comment. The investment firm bought the shopping centre in May 2014 from a group of investors represented by Avestus Capital Partners, however that retained the asset management of the property.

Diagonal Mar – one of the largest shopping centres in Cataluña – covers a surface area of almost 88,000 sqm, including 27,100 sqm owned by Alcampo.

Opened in November 2001, the centre was designed by Jean-Louis Solal and the architect Robert A.M. Stern. Diagonal Mar is located in a prime position, situated approximately five kilometres to the north west of the city centre, in the 22@ district.

This centre has more than 200 stores dedicated to fashion, restaurants, leisure, a bowling alley and other services, as well as 4,800 parking spaces, provided free of charge for three hours.

Moreover, the shopping centre has an open air leisure and restaurant area, “La Terrassa del Mar”, which is open to customers, neighbours, employees from the office towers and tourists from nearby hotels in the area.

More than 3,000 jobs

Diagonal Mar received 16.7 million visitors last year, which represented an increase of 2.3% with respect to the previous year, and resulted in a 9% increase in sales during the period.

The centre owned by Northwood employs more than 3,000 people. The centre’s current tenants include Media Markt, Fnac, Primark, Zara, H&M and Cinesa, amongst others.
In addition, brands such as Revlon, Napapijri and the toy store Drim have opened shops in the centre within the last year.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Madrid Río Shopping Centre Will Open In October 2017

15 April 2016 – Expansión

Located opposite the Matadero, the shopping centre will open in October 2017 and will be directly accessible from the M-30.

The Plaza Río 2 shopping centre will open in October 2017 with a new design that will include an access road between Calle Matilde Gayo and the Manzanares river, as demanded by Carmena’s Government. “At the request of the Town Hall, there will be a wider than planned street connecting (the shopping centre) with the river. In addition, the façade will be more modern and less palatial, in order to better blend in with the environment”, said Bertrand Chevallereau yesterday, the CEO of Sociedad General Inmobiliaria de España (LGSIE), the property developer behind the new shopping centre.

Located in Usera, next to the Matedero Madrid, Plaza Río 2 will have three parking levels, three shopping floors and a terrace with eight restaurants. The lowest floor will be 7m below the level of the river. According to José Solana, Commercial Director of Sociedad de Centros Comerciales de España (SCCE), the project will comprise 150 stores including an Alcampo hypermarket, all of the Inditex brands, electrical appliance shops and a few sports stores “such as, for example, Décimas”.

Of the 150 stores, 30 will be large brands and the rest, 120, will be small and medium-sized retailers. “We have given priority to local retailers wanting to move in or open a second store in the shopping centre, but in general they do not want to move in as they cannot afford the investment or because they have concerns about moving here”, said Solana.

The shopping centre will be opened on a surface area measuring 40,000 m2, but there will not be any leisure facilities such as cinemas, bowling allies or recreational shops as there is not enough space, given that the shopping centre alone will take up 75% of the site. “What’s more, Matadero Madrid already organises lots of cultural events”, added Chevallereau.

Besides the obstacle to access the river directly, the main complaint lodged by Madrid Río’s neighbourhood associations relates to concerns that the construction of a new shopping centre will harm local retailers in the area and may cause transport problems. In this sense, Chevallereau said that local retailers have concerns that “are unfounded, at least in part”

By way of example, he referred to La Vaguada shopping centre – also built by the LSGI investment and development group – where he says that “many businesses have been generated around the building because it is an attraction for the public”. For Chevallereau, “the new shopping centre will not represent competition to small businesses but rather a dialogue”.

In terms of the disruption that traffic may cause in the area, he stressed that the shopping centre will be connected directly to the M-30, where the road exits the Manzanares tunnel, which means that “many cars will access it that way, without having to drive around the streets bordering the shopping centre”.

Original story: Expansión (by Noelia Marín)

Translation: Carmel Drake

Balkany To Open Plaza Río 2 Retail Park In Madrid In 2017

20 January 2015 – Cinco Días

Madrid will have a new shopping centre in 2017. The first one to be built in the heart of the capital for more than a decade. The Plaza Río 2 project will be built alongside the Madrid Río park, and will be developed by the company Sociedad General Inmobiliaria de España (LSGIE). The company is led by Robert de Balkany, a Romanian-French multi-millionaire, related by marriage to the European monarchy and a close friend of the former King Juan Carlos. One of the directors of LSGIE, Jaime de Marichalar, is the ex-husband of Elena de Borbón.

The shopping centre, which will be located on Calle Antonio López, less than four kilometres from the Puerta del Sol, will cover an area of 40,000 square metres, with 180 shops over three floors and more than 1,500 parking spaces.

LSGIE has mandated the company SCCE – a subsidiary of the French group SCC, also controlled by the Balkany family – to begin commercial work and look for businesses who want to open stores in Río Plaza 2. For the moment, it has managed to close a deal with its first illustrious tenant: Alcampo announced a few days ago that it will open a store in the new centre occupying an area of 5,000 square metres.

The most recent shopping centre to be opened in the central area of Madrid was the one located in the former Príncipe Pío train station (also next to the Manzanares river) in October 2004. Since then, only smaller centres have opened, such as the one recently opened on Paseo de la Castellana, 200 (which houses 6,000 square metres of retail space).

Over the last 10 years, during which time Spain has gone through the toughest economic crisis since the Civil War, only a handful of retail parks have been developed in the Community of Madrid, although some of those have also borne the stamp of Robert de Balknay. Such is the case of the Plaza Norte 2 complex – in Alcobendas – the largest shopping centre in Spain, covering 50,000 square metres, and most recently, Gran Plaza 2 – in Majadahonda – whose red tape was cut in 2012 by Robert de Balkany himself and the then President of the Community of Madrid, Esperanza Aguirre.

Six shopping centres have been opened in the city of Madrid since 2004 (in Montecarmelo, Canillejas-Plenilunio, Manoteras, Carabanchel-Isla Azul and the Ensanche de Vallecas-La Gavia) according to data from the Spanish Association of Shopping Centres (Aedecc), but none of those are as central as the planned Plaza Río 2.

Project Canalejas

Another project that is also expected to open its doors in 2017 are the Galarías Canalejas, a luxury shopping centre, covering 7,000 square metres, being developed by Inmobiliaria Espacio and the OHL Group, just 250 metres from the Puerta del Sol.

Plaza Río 2 will be located directly opposite the Matadero Madrid, a group of buildings that have been renovated by the Town Hall in recent years to offer cultural activities (exhibitions, theatres, festivals…) and which has become a magnet for artists and creatives alike. In the area surrounding the capital’s new park, Madrid Río, a project known as Operation Calderón will also be taking shape, involving the demolition of Atlético de Madrid’s current football stadium and the construction of several residential towers.

The original project for the development of the site that will house Plaza Río 2 was approved by the Town Hall in June 2013 and involved the creation of a special urban development plan, which included the construction of a 27-story hotel on top of the shopping centre. However, sources from the company LSGIE say that the project that they have developed never included plans for the construction of that hotel.

The shopping centre’s developers value the location of this site due to its easy access from the M-30 ring road (which runs under the Madrid Río river park), as well as from the roads to Toledo (A-42) and Andalucía (A-4). The proximity of several popular neighbourhoods, such as Usera, Arganzuela, Carabanchel and Puente de Vallecas, has also played a role. According to SCCE’s calculations, 175,000 people live within five minutes of Río Plaza 2 and 500,000 people live within a radius of 10 minutes.

According to the designs for the project, the shopping centre will be directly accessible from the Madrid Río park. Just at that point, there is already a bridge that provides access to the facilities of the Matadero Madrid, the cultural centre Casa del Lector and the Palacio de Cristal-Invernadero de Arganzuela.

The Man Who Brought Us The Mall

The CEO of LSGIE and the SCC group, Robert de Balkany, was the person responsible for importing the concept of the shopping centre or mall from the United States to Europe. It was in 1962 when, after a trip around North America, this Romanian-born Frenchman decided to launch his business venture, which has led him to control the largest shopping centre conglomerate in Europe, with more than 120 properties. He developed his first centre – Parly 2 – in the metropolitan area of the French capital. It opened its doors in 1969. “When I returned from my trip to Detroit, I realised that shopping would never been the same again. The world had changed and consumers wanted service, comfort and activities”, explains Balkany in a corporate publication prepared for the 50th anniversary of the SCC group. “Design had been democratised. I had discovered some land in Chesnay, to the west of Paris, very close to Versailles, and I hired an American architect to join the adventure, to build the first shopping centre in Europe”. Then came Velizy2, Rosny2, Evry2, Ulis2, St Genis2…

Next came international expansion, into Spain, where the SCC group today manages 20 shopping centres, including La Vaguada (the first one opened in the country in 1983) and Plaza Norte 2 (the largest in Spain, with an investment of €300 million and where 2,500 people work). Then came Belgium, Italy, Monaco, Abu Dhabi…

Today, the empire built by Balkany manages 135 shopping centres around the world, with a turnover of €50 million and more than 500 employees.

Original story: Cinco Días (by M. M. Mendieta)

Translation: Carmel Drake