El Corte Inglés to Sell its Centres in Xanadú and Francesc Macià

22 April 2019 – Eje Prime

El Corte Inglés is continuing to divest its real estate. The department store group has put its shops in Xanadú (Madrid) and Francesc Macià (Barcelona) up for sale.

They will be joined by others in San Juan de Aznalfarache (Sevilla), Alcalá de Henares (Madrid), Ademuz (Valencia), Navarra, Independencia (Zaragoza), Málaga, Marineda City (A Coruña) and Siete Palmas (Gran Canaria).

In total, the group’s portfolio for sale comprises 14 properties, 16 plots of land and 65 assets of various types, including flats and parking spaces, spanning a combined surface area of 1.2 million m2.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Inbest Completes its Purchase of a Property in Valencia from El Corte Inglés

5 March 2019 – Las Provincias

The fund manager Inbest Real Estate has formalised its purchase of an asset on Calle Colón in Valencia from El Corte Inglés. The property spans a commercial surface area of 7,600 m2, has 84 parking spaces and contains an office building measuring around 1,800 m2.

The deal forms part of an agreement reached between Inbest and the department store giant last August, which saw the fund acquire assets from ECI in Bilbao and Madrid for €184 million (for the three buildings).

Inbest was only created a year ago, but its portfolio already comprises iconic real estate assets worth more than €350 million, located on the main commercial thoroughfares of Madrid, Bilbao and Valencia.

Original story: Las Provincias

Translation: Carmel Drake

El Corte Inglés Puts 2 Shopping Centres Up for Sale for €100M

3 August 2018 – Voz Pópuli

A new operation for El Corte Inglés. The distribution group has put up for sale two of its smaller department stores. The properties, located in Madrid and Bilbao, are considered non-strategic by the retailer although it will continue to occupy them as the tenant, according to sources close to the operation.

The Expansión newspaper reports that El Corte Inglés is finalising the sale of two establishments to Inbest, the investment vehicle owned by the manager Corpfin Capital Real Estate for around €100 million.

The department store group will continue to use the two buildings – located on Calle Princesa in Madrid and Gran Vía de Don Diego López de Haro in Bilbao – through a long-term lease contract.

This operation forms part of El Corte Inglés’s debt reduction plan. According to Expansión, it is the first divestment that the group will make following the appointment of Jesús Nuño de la Rosa as President in June.

Original story: Voz Pópuli

Translation: Carmel Drake

ECI Puts Colón Building In Valencia Up For Sale

21 September 2017 – Levante EMV

El Corte Inglés has put the building located on Colón, 1 (in Valencia) up for sale for €90 million, according to sources close to the operation. The building, which used to house a Marks & Spencers store, is currently home to a Sfera shop and youth clothing departments. The company has put three floors and the basement up for sale. The upper floors are offices and do not form part of the operation.

The objective of the company is for an investor to buy the building and then lease back the space. This type of operation is known in the real estate sector as a sale and leaseback arrangement and in recent years, banks such as Santander have adopted the same formula. Some interested parties have already visited the property.

The sale of Colón, 1 forms part of El Corte Inglés’ divestment process, which it initiated a few months ago. The same sources cited above highlight that it is the only property that the department store has put up for sale in the Community of Valencia. The company did also consider the option of putting the building at Colón, 25 up for sale, but ruled that out in the end because the land rights belong to the Colegio Imperial de Los Niños de San Vicente.

The idea of the distribution group chaired by Dimas Gimeno is to get rid of its “non-strategic” real estate assets all over Spain, in order to reduce its debt. The total (asset) sales volume is expected to amount to around €1,000 million; to put that figure in context, the group owns assets worth around €18,000 million.

The building that has gone on the market now has a surface area of 7,343 m2. Another property, in Bilbao, worth around €70 million and measuring 5,487 m2, will also be put up for sale. The other properties are located in Albacete, Burgos, Jaén, Madrid, Murcia, Oviedo and Sevilla.

El Corte Inglés acquired the property on Colón, 1 from the British retail giant Marks and Spencers 16 years ago, together with 8 other department stores, located all over Spain, for around €150 million.

El Corte Inglés recorded profits of €160.63 million in its most recent financial year, which ended in February, up by 3% compared to a year earlier; and it increased its sales by 2% to €15,504 million, whereby recording its third consecutive years of sales growth, according to the group’s annual accounts. ECI is now backing the internet to continue its path of growth.

Original story: Levante EMV (by Ramón Ferrando)

Translation: Carmel Drake

ECI Sells 40% Of Torre Serrano To Infinorsa For €50M

14 September 2017 – Expansión

El Corte Inglés has sold 40% of the company Iberiafon, owner of the Torre Serrano building in Madrid, to the real estate company Infinorsa for €50 million, according to sources at the distribution giant.

The firm that has acquired the property, which is owned by several European funds, already owned 60% of Iberiafon’s share capital and also owns other buildings in Madrid, such as Torre Europa.

This operation, which forms part of the distribution group’s divestment plan, effectively assigns a value of €125 million for 100% of the property. The building’s current tenants include the Masaveu Group and the firms GVC Gaesco and Beka Finance, amongst others.

Located at number 47 on one of the most exclusive shopping arteries in Madrid, next to the El Corte Inglés department store on Calle Serrano, the tower has 13 floors, which have a combined surface area of 20,000 m2, including a 5,700 m2 car park.

Half of the total space is used for offices, whilst the shopping area occupies 4,300 m2, which will continue to be leased to the group chaired by Dimas Gimeno, according to the press release.

El Corte Inglés closed its last tax year, from March 2016 to February 2017, with a 2.4% increase in its net profit, to €161.86 million. That saw the group record three consecutive years of growth, whilst the gross operating profit (EBITDA) soared by 7.5%, to reach €981 million, according to the distribution giant.

Specifically, the profit, the highest in the last three years, has been affected by €178 million relating to “disengagement plan”, which has affected 1,341 people.

Original story: Expansión

Translation: Carmel Drake

El Corte Inglés Values Its Properties In Galicia At €600m

26 January 2015 – La Voz De Galicia

El Corte Inglés’s Galician assets account for almost 5% of the total, valued at €15,000 million.

The value of the real estate assets owned by El Corte Inglés in Galicia amounts to €601 million. So the company led by Dimas Gimeno revealed in information sent to the Irish Stock Exchange (the stock market in Ireland), on the occasion of its first bond issue (€500 million) placed by Hipercor.

According to the 333-page document, El Corte Inglés owns 217,000 square metres of retail space in Galicia, with an average value of €2,344 per square metre. Overall, the group’s most expensive buildings are located in Madrid (€4,823 million), followed by Andalucía (€2,563 million) and Cataluña (€1,646 million).

The group has explained to the Irish regulator that Tinsa Tasaciones Inmobiliaria valued most of the group’s property portfolio in September 2013 and March 2014, and assigned it an aggregated value of €15,126 million, of which almost 5% (by surface area) is located in the region of Galicia.

Department stores account for the majority of the group’s real estate assets (€9,187 million), followed by hypermarkets (€4,338 million), other retail space (€803 million) and offices and mixed-use properties (€797 million). “The group has developed an irreplicable property portfolio with unique locations” says the group.

At the end of last year, the group had around 1,555 outlets in total, including 88 department stores, 43 hypermarkets, 203 supermarkets and 451 specialist stores.

42 properties

According to the document, at the end of last year, the group’s commercial presence in Galicia comprised 42 outlets located across the four provinces, including Viajes El Corte Inglés offices (15), Sfera stores (11), Bricor stores (4), Óptica 2000 shops (4), Hipercor stores (2), Supercor shops (11) and El Corte Inglés stores (4).

The department store business accounts for almost 60% of the group’s consolidated turnover. Including Hipercor, Sfera and Viajes El Corte Inglés, amongst others, the group’s revenue amounted to €14,291 million in 2013.

Within the department store division, 51.1% of turnover is generated by the fashion, accessories, jewellery and beauty departments, which together accounted for revenues of €3,858 million.

In the document submitted to the Irish regulator, the group also highlighted the importance of its brands (the fashion lines Emilio Tucci, Green Coast, Dustin and Formul@), which now account for 16% of revenues, compared with 11% in 2008.

The group also revealed that approximately 635 million people visited its stores during 2013. Furthermore, 155 million people visited its website, where it has 4.2 million registered users.

Only twelve female directors

In the final part of the report, which focuses on accounting aspects, there is also mention of employment considerations.

For example, last year, its workforce comprised 93,223 employees, however only 12 of its executives were women, compared with 186 men. Also, 4,276 females were employed as supervisors, versus 9,141 men. In stores, however, women were in the majority, with 47,434 female sales assistants, versus 18,283 males.

Original story: La Voz De Galicia (by M. Sío Dopeso)

Translation: Carmel Drake