Terrassa Plaça Retail Park Will Open On 3 November

27 October 2017 – Press Release

Terrassa has a new retail park, in the form of Terrassa Plaça. With a gross leasable area (GLA) of 30,535 m2, the new complex will be officially inaugurated next Friday 3 November. The event will be attended by authorities from the Generalitat de Cataluña, the Town Hall of Terrassa and representatives of the centre’s operators and Citygrove, the property developer.

The new centre is backed by an investment amounting to €30 million, the creation of more than 500 jobs and will house an extensive and varied retail offer: from the distribution of consumer goods and construction materials to fashion and restaurants. Citygrove’s aim with Terrassa Plaça is to cover the growing demand from the local population for these types of services. An entire commercial offer centralised in a single space.

Famous brands

This new project will open its doors with the following brands in situ: Bricomart, Mercadona, Globomoda, Altafit Gym Club, Gifi, Kiwoko, Barimueble, Sprinter, La Tagliatella, Pause&Play, Maxcolchón, Drim and Petrocat. All of them are looking to take an important step in their expansion here and to establish themselves as iconic labels in the minds of consumers. That is especially true in the case of the Italian company Globomoda, which has chosen to open its first store in Cataluña in Terrassa Plaça.

The complex is located on a plot measuring 56,000 m2 delimited by Avenida del Vallès, Calle Navarra, Avenida de las Naciones and Calle Cantabria. Its construction has allowed for improvements to the transport network in the area, with the creation of a pedestrian crossing on Calle Cantabria (…). In addition, the retail park will have an electric vehicle charging station, plus 1,000 parking spaces for cars and 70 for bikes, as well as a new bus route. Within the next few days, a new bike path will be opened between the city centre and the retail park.

Terrassa Plaça is the city’s new commercial offer and represents one of the most ambitious projects from Citygrove, the Anglo-Saxon property developer who has shaped this project. A key player in the real estate sector in Europe, with offices in the UK and Germany, Citygrove backed Terrassa from day one with the aim of turning it into a commercial benchmark project for the city, which was demanding this type of facility.

Original story: Press Release

Translation: Carmel Drake

Drago & Murias Invest €50M To Build Melilla’s First Shopping Centre

25 October 2017 – Eje Prime

Drago Capital is adding a new project to its portfolio. The real estate manager is finalising the launch of Parque Melilla, the first shopping centre located in the autonomous city of Melilla. The group, which has joined forces with Grupo Murias (to take care of the construction work) has invested €50 million in the project, according to explanations provided by company sources to Eje Prime.

The shopping centre, which is being commercialised by LyC Consultores, has been built on land that formerly housed the Valenzuela Barracks. It will have a gross leasable area (GLA) of 34,600 m2 in total, spread over two open floors, with parking for 1,350 vehicles.

The centre will be a mixed format retail park style (given that the gross leasable area will range between 20,000 m2 and 39,999 m2), with an area that will house a hypermarket along with small and medium-sized stores for fashion and services, and another space where the large format operators will compete.

According to Drago, the construction work is being carried out in record time: the starting gun was fired in September 2016 and more than 80% of the property has already been built. At the moment, Drago is working on fine-tuning the premises of the various operators and the centre is expected to open before the end of the year. The whole project will generate around 580 direct jobs and around 800 indirect roles when it opens its doors.

The centre is almost completely occupied. 85% of the premises have been leased to fashion, electronics and sports groups, as well as restaurant chains. Some of the brands that are going to open stores in the centre include H&M, Decathlon, Springfield, C&A, Inditex, Eroski, Worten, Inside, Multiópticas, Cortefiel, Primor, Guess and Levi’s.

As a result of this shopping centre, Melilla will lose its title as the only Spanish region without this format of retail offering, which will serve as a gateway for brands that do not have a presence in the city yet. The population in Parque Melilla’s catchment area amounts to almost 400,000 inhabitants.

Since its inception, Drago Capital has launched and managed fourteen investment vehicles encompassing more than 1,200 properties in Spain and Portugal. The company is dividing its business in two. On the one hand, Drago Capital has developed its asset management business, which offers services ranging from administrative management to property management, as well as the implementation of divestment and refinancing strategies.

The group also manages several investment vehicles on the Iberian Peninsula, in which large institutional investors hold stakes. Drago primarily manages two types of vehicles, those involving private capital and those involving managed accounts and joint ventures, which are specific vehicles oriented at covering the specific real estate investment needs of institutional investors (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake

Hispania Sells Office Building In Madrid For €37.5M

26 June 2017 – El Mundo

The real estate investment company (Socimi) Hispania has commenced its office divestment process with the sale of the Aurelio Menéndez building in Madrid for €37.5 million, according to a statement issued by the company.

The sales price – which is equivalent to a cost of €7,800/m2 – represents an increase of 39% over the property’s most recent appraisal value, including the pending investment.

The building, acquired by Hispania in October 2015, has a gross leasable area (GLA) of 4,700 m2. With the sale of this building, the Socimi has begun the divestment of its portfolio announced in February 2017 and as such to fulfil the commitment acquired with its shareholders.

The property, which is located in the Principe de Vergara area, one of the capital’s business districts, is currently being renovated.

Moreover, Hispania signed a lease contract with the law firm Uría y Menéndez to occupy the whole building for a duration of 17 years, of which it is obliged to fulfil 7.5 years.

The director of the Socimi, Concha Osácar, has highlighted that the sale of this property “shows Hispania’s capacity to identify buildings in prime locations, reposition them to a higher level and attract first-rate tenants with stable, long-term contracts.

“We are satisfied with the result of this investment and of the significant profitability it has generated for our shareholders”, she concluded.

Original story: El Mundo

Translation: Carmel Drake

Iberdrola Sells 55% Of Hotel Hilton Barcelona For €80M

22 June 2017 – Expansión

Iberdrola Inmobiliaria has completed the sale of 55% of Hotel Hilton Diagonal Mar in Barcelona to the real estate division of the insurance company Axa (Axa Investment Managers- Real Assets). The operation has been closed by Axa on behalf of one of its clients, said the vendor in a statement issued on Tuesday.

The energy group’s real estate arm will retain ownership of 45% of the property. Iberdrola Inmobiliaria will receive €80 million for the percentage stake sold.

The Hotel Hilton Diagonal Mar, inaugurated in 2005, is operated by the chain Hilton Worldwide under a long-term lease contract. The four-star establishment contains 430 rooms, of which 20 are suites.

In the operation, the vendor has been advised by the consultancy firm Irea and the law firm Ashurst. Currently, Iberdrola Inmobiliaria owns a portfolio of rental assets spanning a gross leasable area (GLA) of more than 217,000 m2. Its most iconic property is the company’s headquarters in Bilbao.

Moreover, the company is developing around 300 homes, located mainly in the Community of Madrid, although it also has two projects on the coast. In addition, Iberdrola Inmobiliaria is working on a project comprising 42 villas located in the Islas del Mar area (Puerto Peñasco) of Mexico.

Original story: Expansión (by R. Ruiz)

Translation: Carmel Drake

Axa & Sonae Sierra Team Up To Buy Área Sur Shopping Centre

16 June 2017 – Observatorio Inmobiliario

Axa Investment Managers – Real Assets and Sonae Sierra have announced the completion of their purchase of the Área Sur shopping centre (in Jerez de la Frontera, Cádiz) from its owner until now, Union Investment Real Estate. For the time being, the amount paid for the operation has not been disclosed, but sources consulted by Observatorio estimate that it must have gone for more than €100 million. To carry out the acquisition operation, the buyers have constituted a joint venture, in which Axa IM – Real Assets will be the majority shareholder (with 85% of the capital), whilst Sonae Sierra will hold the remaining 15% and will be the Operating Partner.

Inaugurated in September 2007, Área Sur has a gross leasable area (GLA) of 47,000 m2, spread over three floors, as well as 2,344 parking spaces. The first floor, measuring more than 23,400 m2, is home to fashion brands such as Zara, Primark, Massimo Dutti, Cortefiel, Sfera, Bershka, Pull & Bear, Springfield, Stradivarius and Okeysi, amongst others. The top floor houses a large leisure and restaurant space, spanning 10,000 m2, as well as an 11-screen Yelmo cinema, whilst the ground floor, measuring 14,200 m2, has a Mercadona and an El Corte Inglés store.

The Área Sur shopping centre, which receives almost 7 million visitors per year, has a privileged location in one of the areas of Spain that receives the most tourists. The centre has an area of influence of almost 450,000 inhabitants, and it is one of the largest shopping centres in Andalucía.

Nathalie Charles, Regional Head of Asset Management & Transactions for Southern Europe at Axa IM – Real Estates, said that “this is our first operation in collaboration with Sonae Sierra, one of the most important professionals in the retail real estate sector in Europe and with whom we hope to have the opportunity to work on other projects in Europe in the future”.

Pedro Caupers, Chief Investment Officer at Sonae Sierra, added that “we will pour all of the experience and knowledge that we have accumulated over more than twenty-five years, to improve the returns on the asset and contribute added value to Área Sur, to turn it into one of the iconic centres in the south of Andalucía. Sources at Sonae Sierra confirm that they are continually looking for new and innovative asset management initiatives, with the aim of achieving a higher return on investment for our shareholders. Similarly, we are very happy to be carrying out this project with Axa IM – Real Assets, in accordance with our model to co-invest with other partners, assuming responsibility for the management in order to achieve the objectives set by both parties”.

Cushman & Wakefield advised Union Investment on the sell-side.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake

Marathon Finalises Purchase Of 8 Shopping Centres In Spain & Italy

6 June 2017 – Expansión

The US fund Marathon Asset Management is negotiating the purchase of a new European portfolio to incorporate into its list of real estate investments. The company, one of the star shareholders of the Spanish property developer Vía Célere, together with Värde, is finalising the purchase of a portfolio, known as Bronze, comprising eight shopping centres located in several towns in Spain (2) and Italy (6).

These centres were acquired by the Pradera European Retail Fund between the end of 2006 and the middle of 2009 and their current market value amounts to €326 million. Six of the retail establishments are located in Italy. The largest, Domus Shopping Centre, has a gross leasable area (GLA) of 26,795 m2 and is located in Rome. Moreover, another is located in Formia, measuring 23,422 m2, called Itaca, and the Prato Sardo Shopping Centre, measuring 15,724 m2, is located in Nuoro, on the island of Sardinia. Three of these shopping centres are fully occupied, whilst the occupancy level of the property in Rome is 77%.

Spain

In the case of the Spanish component, Pradera is selling the La Marina shopping centre, located in Benidorm; and the Llobregat centre, located in Barcelona. La Marina covers a retail surface area of 35,599 m2 and its occupancy level stands at around 94%. Meanwhile, the Llobregat centre is smaller, with a GLA of 14,160 m2, and its occupancy rate amounts to around 66%.

The value of the Spanish establishments amounts to around €95 million. La Marina was one of the first properties to be purchased by Pradera’s retail fund, which spent €525 million on nine operations in Spain and Portugal in December 2006.

In fact, initially, Pradero included a Spanish third shopping centre in the sales process: the Travesía de Vigo centre. Acquired in 2007 for €40 million, this property, with a GLA of almost 10,000 m2, is currently worth €26 million. Although Pradera initially planned to sell, in the end, it has decided to exclude it from the batch for sale, explained sources close to the process.

Marathon already owns one shopping centre in Spain, given that at the beginning of last year, it acquired Bahía Azul in Málaga for €18.5 million.

Record investment

The operation by the US fund reflects the interest from real estate investors in shopping centres, after investment figures reached record levels in the last two years.

In 2016, investment in shopping centres amounted to €3,500 million, up by 59% compared to a year earlier. During the first three months of 2017, investment in commercial assets reached €1,365 million, which represented a significant proportion of the total investment in non-residential real estate (€2,326 million). Of that figure, several operations stand out, such as Intu Properties’ purchase of the Xanadú shopping centre, in Arroyomolinos (Madrid), for €530 million.

Recent purchases by international investors include the operation closed by the British management company Schroders, which spent €52.5 million on the acquisition of the Metromar shopping centre, in Sevilla.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Intu Sells 50% Of Xanadú To TH Real Estate For €264.4M

31 May 2017 – Europa Press

The British firm Intu has sold 50% of the Xanadú shopping centre, located in the Madrilenian town of Arroyomolinos, to TH Real Estate for €264.4 million. That figure represents 50% of the price that Intu paid to the Canadian group Ivanhoé Cambridge for the whole establishment back in March.

In this way, Intu and TH Real Estate are creating a joint venture to manage the ownership of the shopping centre, including the Snowzone, the only indoor ski slope in Spain, according to a statement issued by the British firm. Cushman & Wakefield introduced and advised TH Real Estate as a partner to Intu in the creation of that joint venture.

“We are delighted to announce our new partnership with TH Real Estate and we look forward to working together on a series of active management opportunities to improve and strengthen the position and offering of Madrid Xanadú”, said the CEO of Intu, David Fischel.

Xanadú, which has an occupancy rate of 97%, is currently home to more than 220 stores. Its tenants include Inditex, El Corte Inglés and Primark, and it has a gross leasable area (GLA) of 153,000 m2 plus 8,000 parking spaces.

The shopping centre, which receives 13 million visitors per year, has a clear focus on leisure, given that its facilities include the only indoor ski slope in Spain, 15 cinema screens, a bowling alley and almost 40 restaurants. It also plans to open an Aquarium and a Nickelodeon centre this year.

The aim of the British firm, which is now working hand in hand with its partner, is to transform the centre into the resort of choice in the area. It plans to renew the offering, revitalise the space, undertake a digital transformation, as well as invest in the image, all with the aim of converting the centre into an attractive tourist destination where visitors can spend their leisure and free time.

Original story: Europa Press

Translation: Carmel Drake

Aguirre Newman: Inv’t In Shopping Centres Amounted To €3,500M In 2016

8 May 2017 – Iberian Property

Total investment in shopping centres in 2016 amounted to €3,500 million, an increase of 59.1% compared to 2015 and the highest on record, according to the Estudio de Mercado Centros Comerciales 2016/2017 published by Aguirre Newman.

During the first trimester of 2017, elevated investment activity continued, with more than €1,000 million invested in transactions involving shopping centres.

Thanks to this level of investment, in 2016, the shopping centre segment was the second most dynamic real estate market, after offices, for the second year running. As regards the kind of buyer, institutional investment funds were the most active, accounting for more than 52% of the total volume, as were the Socimis, with more than 38%. The remaining activity was undertaken by real estate companies and private investors.

In 2016, more than 35 investment transactions were closed, seven of which involved portfolios. The main transaction involving a single asset took place in Barcelona, with Deutsche Bank’s purchase of the shopping and entertainment centre Diagonal Mar, for just over €490 million. Also, the purchase of Metrovacesa by Merlin Properties had a very significant impact on the shopping centre figures, accounting for around 28% of the total transaction amount.

During 2016, there was a slight containment of initial yield rates “due to the positive macroeconomic environment and the perception of a potential return to an upswing in rents”, according to Aguirre Newman. In the case of “gold” shopping centres, transactions closed in a punctual manner, below 4%, a record low for yields in this market.

The report from Aguirre Newman also points out that new supply incorporated into the 2016 market covered a gross leasable area (GLA) of more than 273,000 m2. The main shopping centres inaugurated in 2016 were Parque Nevada (Granada) and FAN Mallorca Shopping (Palma de Mallorca). Of the 273,000 m2 of new space, 17% was the consequence of the expansion of existing shopping centres.

Original story: Iberian Property

Translation: Carmel Drake

Aguirre Newman: Inv’t In Shopping Centres Exceeded €1,000M In Q1

4 May 2017 – Expansión

Shopping centres are continuing to capture investor interest and in Q1, retail represented the second most active real estate segment, exceeded only by offices. After a record-breaking year in 2016, with an investment volume of more than €3,500 million, up by 59%, investment activity in this type of asset continued during the first quarter of 2017 to amount to more than €1,000 million, according to a study compiled by Aguirre Newman.

Milestones such as Deutsche Bank’s purchase of the Diagonal Mar shopping centre (Barcelona) for €495 million last August and Intu’s recent acquisition of the Xanadú shopping centre in Arroyomolinos (Madrid) for €530 million have carried this market to historical maximums.

Institutional investment funds account for 52% of the total investment volume, followed by Socimis, with 38%, and then real estate companies and private investors. The forecasts indicate that investors’ interest in this market will continue in 2017, although “it will be hard to achieve the investment volume recorded in 2016 given the lower supply of products for sale”.

Aguirre Newman’s study predicts that around 235,000 m2 of new surface area will be incorporated into the market this year, compared with 273,000 m2 last year. Of the total, 80% will correspond to new supply, whilst the remaining 20% will be generated by the expansion of existing shopping centres.

By autonomous region, Andalucía, Madrid, Valencia and Cataluña account for 55% of the shopping centres in Spain and 58% of the gross leasable area (GLA). By contrast, Cantabria, La Rioja and Ceuta are the autonomous regions with the smallest gross leasable areas, alongside Melilla, which is the only region not to have any shopping centres at all.

In terms of returns, the initial rate required for the best shopping centres will continue to range between 4% and 4.5% although that figure may be lower for certain very unique assets.

According to the study, demand for retail premises from medium and large chains will continue to focus on the best performing shopping centres, whilst small local traders, which have a more limited appeal, will opt for the poorly positioned centres.

Original story: Expansión (R. Arroyo)

Translation: Carmel Drake

Sambil Outlet Opens Largest Shopping Outlet In Spain

27 March 2017 – Observatorio Inmobiliario

The Sambil Outlet Madrid was inaugurated on Thursday (23 March), it is a new shopping centre concept that combines fashion outlets with restaurants, leisure and other services. With a gross leasable area (GLA) of 43,500 m2, it is the largest outlet centre in Spain and the first European project undertaken by the Venezuelan group Sambil.

According to its developers, the total investment in the shopping centre amounted to €59 million and at the time of opening, it has an occupancy rate of 85% of the GLA. It contains 130 retail premises in total and has 2,400 parking spaces. There are plans to open charging points for electrical vehicles. Sambil Outlet Madrid will create almost 2,000 direct and indirect jobs.

Ricardo and Alfredo Cohen, Directors of the Sambil Group, participated in the inauguration ceremony. They stated that “our commitment to this market is serious and we will soon be exploring new avenues for investment in this country”.

Other attendees at the inauguration of the new centre included Javier Ruiz Santiago, Deputy Minister for the Economy and Innovation, María José Pérez-Cejuela, Director General of Trade and Consumer Affairs, both from the government of the Community of Madrid; Santiago Llorente, Mayor of Leganés; and a large number of councillors from the municipal corporation. Ricardo Fontana, Minister-Counsellor of the Embassy of Venezuela, also attended, along with representatives of the country’s main retailers.

The fashion space, which accounts for 51% of the total surface area, is home to brands such as Outlet from El Corte Inglés, For & From (Inditex group), Fifty Factory (Cortefiel group) and the Outlet Sport (Intersport group), amongst others.

The food area will house the largest Simply Hypermarket in the Community of Madrid. The leisure space will include a 12-screen Odeon cinema and the largest wind tunnel in Europe, the Hurricane Factory, which will open within the next few weeks. The restaurant section will include a Burger King, Foster’s Hollywood and Grupo Vips restaurants, amongst others. There will also be an area dedicated to services.

Original story: Observatorio Inmobiliario

Translation: Carmel Drake