Mango’s Owner Sells H&M Store in Burgos for €12.6M

11 January 2018 – Eje Prime

The property will continue to be occupied by H&M after the operation. The Swedish retailer leases the 3,000 m2 building, which Mango purchased at the end of the economic crisis for €8 million.

Mutualidad General de Abogacía is adding new assets to its property portfolio. The company has acquired the building that houses the flagship store of the Swedish giant H&M in Burgos for €12.6 million, according to sources close to the operation. Until now, the property had formed part of the portfolio of Punto Na, the real estate company owned by the businessman Isak Andic, founder of the Catalan fashion chain Mango.

The property has a retail surface area of 3,000 m2, spread over four floors. The operation, which has been brokered by the real estate consultants Torit Allocation and Otto Capital, will allow Mutualidad General de Abogacía to fatten up its collection of retail assets, which account for 30% of the group’s total portfolio. Following the acquisition, the fashion chain H&M will continue to operate in the store, whereby guaranteeing the Mutua de los Abogados a profitable long-term tenant.

The building is located on the corner of number 1 Plaza de Santo Domingo and number 2 Calle Moneda, and has a façade measuring 66 m. The store is located next to several Inditex and Mango shops, as well as a large El Corte Inglés department store.

Punta Na acquired the building at the end of the economic crisis for €8 million. Until then, the building had been occupied by the historical Caja de Ahorros Municipal de Burgos (…).

In recent years, the owner of Mango has been growing his portfolio of assets by buying up retail premises. Although the businessman’s real estate company is Punto Na, Andic also operates in the retail sector with Punto Fa, which is the company through which he operates Mango.

Thus, like Amancio Ortega has done with Pontegadea, the founder of the Catalan fashion chain, owned assets worth €1.329 billion in 2016 and his objective was to continue to increase his portfolio by acquiring retail premises to lease them to large fashion retailers, which tend to sign long-term lease contracts (…).

The lawyers’ mutual society, a not-for-profit organisation that offers investment solutions for legal professionals, owns a large portfolio of properties all over Spain. The entity has 44 assets under management, spanning a total surface area of 271,816 m2, of which 89% are occupied by tenants (rental arrangements).

By type of assets, 53% of the portfolio comprises offices, 20% hotels, and the remaining 27% is split between retail premises, nursing homes, industrial assets and parking lots.

In terms of the geographical distribution, most of the portfolio’s real estate assets are located in the Community of Madrid, specifically, 29 assets. The other properties are located in Barcelona, where it owns 4 assets; plus it has around ten more buildings in Alicante, Almería, Bilbao, Granada, Málaga, Salamanca, Santander, Sevilla, Lérida, Valladolid and Vigo.

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Inditex Puts 16 Stores in Spain & Portugal up for Sale for €400M

12 December 2017 – Eje Prime

Inditex is getting rid of some of its property portfolio. The Galician giant has put 16 retail premises up for sale, of which fourteen are located in Spain and the other two in Portugal. The buyer will have to commit to leasing the stores to the retail group for twenty years.

The retail group is looking to raise USD 472 million (€400.5 million) from this operation, through which it is seeking to harmonise its leasing strategy, according to Bloomberg. Inditex has only confirmed the sale of the premises.

The Spanish company ended the first half of this year with an 11.5% increase in sales and a 9% rise in its net result, percentages that were similar to those recorded during the first six months of 2016. The company chaired by Pablo Isla recorded turnover of €11.671 billion, whereby exceeding the €11 billion threshold for the first time during the first six months of the year.

The net result of the company that owns Zara amounted to €1.366 billion during H1 2017, compared to €1.256 billion during the first half of last year. Its EBITDA also grew at a rate of 9%, from €2.112 billion to €2.292 billion.

Original story: Eje Prime

Translation: Carmel Drake