1 February 2017 – Real Estate Press
Intu has put the highest offer on the table for the Xanadú shopping centre and, although the final terms of the deal have not yet been agreed, all indications suggest that the British group will end up acquiring the sought-after asset.
Market sources say that the price of this operation (…) could reach as much as €500 million, with an initial yield of almost 4%. That figure would represent a milestone for the market and represents yet another example of the high degree of interest being shown in this kind of asset.
A price of €500 million would exceed the €495 million paid by Deutsche Bank when it purchased Diagonal Mar in Barcelona last year and would make it the largest shopping centre transaction ever closed in Spain.
The Xanadú shopping centre, which is located in the Madrilenian municipality of Arroyomolinos, was inaugurated in May 2003 and is owned by the Canadian group Ivanhoé Cambrdige, the real estate division of Caisse de Dépôt et placement du Québec, one of Canada’s largest institutional funds.
Ivanhoé bought Madrid Xanadú in 2006 from Mills Corporation, together with two other shopping centres, one in Canada – Vaughan Mills (Ontario) and one in Scotland – Saint Enoch (Glasgow) – for a combined value of around €770 million.
The shopping centre in Arroyomolinos has a total surface area of c. 180,000 m2, as well as almost 10,000 parking spaces, of which 500 are indoors.
Madrid Xanadú houses almost 220 stores, leased to tenants such as Hipercor, El Corte Inglés, Bricor, Apple, Hollister and Decathlon. It also offers leisure facilities, oriented towards families and young people, including a 15-screen cinema, a mini-golf course, a mini theme park, themed restaurants and a bowling alley.
The shopping centre also has an indoor ski area, the only one in Spain and the largest in Europe, with almost 18,000 m2 of slopes.
Moreover, last summer, Ivanhoé signed an agreement with the attraction park manager Parques Reunidos to construct an Aquarium in Madrid Xanadú. Both companies reached the agreement with Viacom International Media Networks (VIMN), a division of Viacom to construct a leisure centre with characters from Nickelodeon at Madrid Xanadú.
The aquarium, which will open its doors in 2017, will be the first in Madrid and the first in a shopping centre in Spain, whilst the Nickelodeon leisure centre will open its doors at the beginning of 2018 and will be the first of its kind in Madrid. Madrid Xanadú is located fifteen minutes from the centre of the capital by car and is well connected to all points in the Community of Madrid.
Original story: Real Estate Press
Translation: Carmel Drake