Lar España Buys Rivas Futura Shopping Centre for €62M

6 February 2018 – Expansión

The Socimi in which Pimco holds a stake has purchased the Rivas Futura shopping complex, in the Madrilenian town of the same name, for €62 million.

Lar España has completed its first investment of 2018. The Socimi, whose largest shareholder is the fund manager Pimco, has completed the purchase of the Rivas Futura shopping complex, located in the Madrilenian town of Rivas.

Inaugurated in 2016, this complex was promoted by the real estate firm Avantis, and became a reference in Madrid, with a surface area spanning more than 55,000 m2 and first-class tenants such as Media Markt, Conforama and Toys R Us. Next to the retail park, the same real estate firm constructed a large office complex and a shopping centre called H2Ocio. Recently, that shopping centre also changed hands, with the manager CBRE Global Investors acquiring 70% of the property.

In 2008, Avantis’ liquidity problems meant that it had to find a new owner for the complex. The real estate subsidiary of Axa spent €81 million to buy the centre at that time. Years later, the fund Lone Star was awarded the park as part of Project Octopus, formed by loans from the German bank Eurohypo.

Now, the Socimi managed by the real estate group Lar has become its new owner, after paying €61.6 million to the most recent owner: Credit Suisse.

With this new investment, Lar España has become the largest operator of retail parks in Spain, with more than 150,000 m2 in its portfolio. Its flagship assets include the Megapark complex in Barakaldo, where the Socimi owns both the Megapark shopping centre and the factory outlet (acquired for €170 million), as well as the leisure area; that operation was closed at the end of October.

This purchase also represents the first acquisition of a commercial asset by the Socimi in Madrid, where it already owns a luxury housing development, Lagasca 99, as well as two office buildings. At the end of last year, Lar España put its office portfolio, comprising four assets and worth €170 million, up for sale. Since then, it has sold two of the assets, both located in Madrid and both sold to the same buyer: the real estate firm Colonial.

During the first nine months of 2017, Lar España generated profits of €72.2 million, up by 55% compared to a year earlier, after earning €57.2 million, up by 36%.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Lar Buys A Shopping Centre In Vizcaya For €170M

22 July 2015 – Expansión

Lar España Real Estate has agreed to purchase the Megapark de Baracaldo (Vizcaya) retail park and outlet from the fund Oaktree for €170 million, in a deal that represents the Socimi’s largest single investment to date.

Following this transaction, which will close in October, the listed company will have made a total investment in real estate assets of €828 million since its creation at the beginning of 2014.

Lar España is negotiating this purchase whilst it carries out a capital increase amounting to €135 million, according to the company’s reports to Spain’s National Securities Market Commission (CNMV).

The property acquired covers a surface area of 64,000 m2, of the Megapark de Baracaldo’s total surface area of 128,000 m2, which constitutes the largest retail space in the País Vasco and the fourth largest in Spain.

Specifically, Lar has acquired a retail park measuring 44,152 m2, which is home to 14 medium-sized retail outlets, which are leased to fashion, household and entertainment brands, such as Media Mark, Decathlon, El Corte Inglés and Toys R Us, amongst others.

Similarly, it has acquired a ‘factory outlet’, the only one in the North of the country, which contains 59 retail premises in its 19,395 m2 surface area, which are leased to Nike, Mango, Puma, Desigual and Purificación García.

Lar estimates that the site has an initial occupancy rate of 92% and a yield of 6.25%. (…).

Original story: Expansión

Translation: Carmel Drake