Intu To Buy Xanadú Shopping Centre In Madrid For €500M

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

GreenOak Puts All Of Its Logistics Assets Up For Sale

29 November 2016 – El Confidencial

Early in the summer of 2015, the opportunistic fund GreenOak surprised the market by announcing its unbridled appetite for the Spanish logistics market. In June of that year, the vehicle funded and managed by John Carrafiell announced that it had just purchased five logistics assets in the Community of Madrid, with a combined surface area of 200,000 m2, and that it had agreed to acquire another 100,000 m2.

Over the next few months, the fund completed a barrage of operations, involving the acquisition of, amongst others: a 14,000 m2 platform, which became the largest logistics operation in the País Vasco in 2015; a 30,000 m2 asset in Toledo, leased to Schwepees; the Michelin logistics platform in Seseña, which has a surface area of 47,000 m2; and a portfolio covering 144,320 m2 spread across several properties in Zaragoza and Massalvés (Valencia), which it purchased from Prologis.

Thus, in just 12 months, GreenOak fulfilled its objective of acquiring a portfolio covering 500,000 m2, but rather than develop it, the US fund has now decided to put it up for sale, and whereby take advantage of the strong appetite from institutional investors and specialists in the sector. According to several sources familiar with the sale, the fund has opened a formal sales process, whose first key milestone was recorded last week, with the presentation of preliminary offers from interested parties.

The US firm Eastdil Secured, a subsidiary of Wells Fargo, is coordinating the process, according to the same sources, who point out that this advisor was also chosen by the Canadian fund Ivanhoe to coordinate the sales process of Xanadú, one of the largest shopping centres in Spain, which was sold for around €500 million.

GreenOak’s decision to divest its entire logistics portfolio is seen in the market as an operation by an opportunistic fund, which knew how to buy cheaply and which has decided to take advantage of the interest from more stable investors to generate rapid capital gains. The consideration for the operation is expected to exceed €200 million, compared with the figure of around €125 million that GreenOak has invested to build the portfolio.

Opportunistic buyer

GreenOak signed its first major property purchase in Spain in 2014, when it acquired seven shopping centres from the Dutch group Vastned Retail for €160 million. (…).

It then went onto buy the building located at number 77 on Calle Fuencarral, which it acquired from the General Social Security Treasrury for €21 million; followed by the Sevilla Factory shopping centre, which it bought for €12 million; an office building in Port Cornellá (Barcelona), which it purchased for €10.1 million; and four buildings in the Avalon Business Park (Madrid) and another one in Arroyo de la Vega (Alcobendas), on which it spent more than €55 million in total, according to the figures disclosed in the annual accounts of Gore Spain, the Socimi through which the fund channels its investments in our country.

The icing on the cake for GreenOak came in June this year, when it acquired the Las Mercedes Business Park from Standard Life. The property is located on the outskirts of Madrid, next to the A-2 motorway and comprises an 80,000 m2 complex with 10 buildings, of which nine are used for offices, with the tenth used for the provision of general services.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

TIAA Henderson Acquires the Islazul Retail Park For €230 Mn

27/10/2014 – Expansion

TH Real estate, management company created as a fusion of Tiaa Creff and Henderson Global Investors, has been negotiating on the purchase with fund Ivanhoe Cambridge since late summer.

Finally, its offer outbid other proposals submitted by bidders like Hines or the fund of HSBC.

The Islazul shopping center has 265.000 square meters of built area and 90.000 square meters of GLA (gross lettable area). This is the second largest retail park in Madrid and one of the most popular as it generates 12-15 million euros annually.

Together with the purchase, TH Real Estate manages a €900 million worth of assets on the Iberian Peninsula. Among its commercial properties in Spain, notable are the Nervion Plaza in Sevilla and the Espacio in La Coruña. Besides, the firm owns two shopping parks in Fuengirola and Vigo, a hotel in Malaga and a logistics hub in Alovera (Guadalajara).

Quebec & Lar

Opened in 2008, the property has been included in the portfolio developed jointly by Ivanhoe Cambridge (belonging to bank Caisse de Dépôt et Placement du Québec) and Spanish real estate firm Lar. To set the ball rolling, the partners put €350 million in total.

Earlier this year, first attempt to sell the shopping center ended up in fiasco as the maximum price obtained was €185 million, submitted by Orion, an amount that was rejected by Ivanhoe expecting at least €200 million for the unit.

The operation is a sampling of the huge interest of investors in real estate assets for rent and, above all, in shopping malls.

Thus, out of the total of €5.67 billion invested in the property market during the first nine months of 2014, more than €2.7 billion was spent on Commercial Real Estate (CRE), as per data of advisor CBRE.

Big foreign investment funds and Socimis (Spanish counterparts of REIT vehicles) lead in the year-to-date acquisition volume. In fact, one of the listed trusts, Merlin Properties, has conducted the 2014 largest transaction on the Marineda shopping park in La Coruña, paying €260 million for the property. Furthermore, Socimi Lar España has spent €148 million on three shopping centers.

 

Original article: Expansión (by R. Ruiz)

Translation: AURA REE

Lar & Ivanhoé Put the Islazul Shopping Center in Madrid Up For Sale Again

23/06/2014 – Expansion

The real estate group Lar (running the Socimi – REIT –  Lar España) and the Canadian fund Ivanhoé Cambridge have decided to put the Islazul shopping mall in Madrid up for sale.

The first sale of the 90.700 square meter GLA shopping center has been announced earlier this year. That time, Orion offered €185 million for the property which was far less than expected €220 million based on the mall valuation. To obtain a better price, the partners made the decision to put the Islazul up for an auction again.

The fund bought two other shopping centers: the Plenilunio in Madrid and the Puerto Venecia in Zaragoza.

Apart from Orion that underpins its offer, also Blackstone, Klepierre and Invesco are said to take part in the new bidding.

 

Original article: Expansión (by R. Ruiz)

Translation: AURA REE

Blackstone & Natixis Enter Gecina Challenging the Spanish Justice

31/01/2014 – Cinco Dias

Blackstone, one of the biggest private equity company in the world, acquired 22,9% of Gecina´s capital, the largest French real estate firm. The assets taken over by Blackstone have been in hands of Joaquín Rivero and Bautista Soler, that together owned 31% of Gecina. The U.S. firm bought 14,4 millon assets of Gecina, equal to 22.98% of the capital. Also Ivanhoe, Caisse de depot et placement du Quebec fund is taking part in the transaction.

French bank Natixis has acquired another 4,9% of Gecina, also from the two businessmen. (…) Together, Blackstone and Natixis possess 27.8% of the company, apparently more than Metrovacesa, owning 27%.

The acquisition has been approved by a court in Luxembourg, once rejected by a Spanish legal institution. (…).

Original article: Cinco Días (Alberto Ortín Ramón)

Translation: AURA REE