Tag: La Vaguada

El Corte Inglés Puts a RE Portfolio Worth Between €1.5bn & €2bn Up For Sale

21 December 2018 – Expansión

El Corte Inglés is preparing to shatter the real estate market. The distribution giant has engaged PwC to sell a mega-portfolio containing 130 properties with a valuation of between €1.5 billion and €2 billion, which would represent the largest divestment undertaken by the company to date.

The operation includes a large variety of assets, all of which are non-strategic, and includes shopping centres (not large department stores), logistics warehouses, supermarkets, offices and land. Once the period for receiving offers has closed and depending on the offers themselves, El Corte Inglés will reserve the right to reduce the size of the portfolio. According to market sources, the firm’s intention is not to find a single buyer but rather to slice up the assets into packages.

Real estate portfolio

The company chaired by Jesús Nuño de la Rosa is whereby accelerating the divestment plan launched to reduce debt with a view to obtaining an investment grade rating from the ratings agencies over the medium term.

El Corte Inglés is one of the main owners of real estate assets in Spain, with a portfolio worth more than €17 billion, larger even than those owned by the large Spanish Socimis, Merlin and Colonial, whose asset portfolios were worth €12.2 billion and €11.2 billion, respectively, as at June, and those of the large real estate companies such as Amancio Ortega’s Pontegadea, whose assets were worth €8.8 billion at the end of 2017.

With this large exposure to property, El Corte Inglés is taking advantage of the investor appetite in the market for real estate assets to clean up its balance sheet. Last year, real estate investment reached a new record with transactions worth €18.7 billion, including corporate operations, which represented an increase of 46%. Excluding purchases by companies, the investment figure also reached a historical maximum of €10.8 billion, according to data from CBRE.

In the framework of this plan, this summer, the company sold its centres in Parquesur and La Vaguada, both in Madrid to Unibail Rodamco, the largest operator of shopping centres in Europe. Those assets have a surface area of 20,000 m2 each and were sold for €160 million.

Original story: Expansión (by R. Arroyo & V. Osorio)

Translation: Carmel Drake

El Corte Inglés Closes its Biggest Sale of Buildings To Date for €160M

18 December 2018 – Iberian Property

To continue its policy of reducing debt through the sale of real estate assets, El Corte Inglés has closed its biggest sale of buildings so far, receiving €160 million for its centres in Parquesur and La Vaguada, both in Madrid.

Although the group will continue to operate in these commercial centres on a tenant basis, the properties will now be owned by Unibail-Rodamco-Westfield (URW). Thus, it is also selling the stores that it had in the interior, where URW already was co-owner. The Parquesur store measures 20,000 m2 and the La Vaguada store spans 20,200 m2, as reported by Cinco Días based on data from ‘La Asociación Española de Centros y Parques Comerciales’ (the Spanish Association for Shopping Centres and Retail Parks).

Through this transaction, El Corte Inglés is continuing its strategy of divesting non-strategic real estate assets. Thus, in 2018, it has carried out several sales, specifically, it sold two assets in Madrid to the Inbest Socimi in the summer for €100 million and another two assets in Valencia in October for about €90 million.

The value of the URW’s properties in Spain, not including this latest transaction, amounts to €3,823 million.

Original story: Iberian Property (by Jaqueline Cardoso)

Edited by: Carmel Drake

Unibail Will Invest at Least €800M in Spain Over 6 Years

26 January 2018 – Expansión

Unibail-Rodamco, the largest European real estate group, has committed investments for projects in its portfolio in Spain amounting to, at least, €800 million between now and 2024; it has already disbursed €120 million of that figure.

The Director of Development and Investments at Unibail-Rodamco in España, Javier Solís (pictured above, left), explained yesterday at a meeting organised by IESE, Tinsa and Savills Aguirre Newman, that the company has projects in its portfolio spanning a new gross leasable area (including extensions) of 187,000 m2 and a total committed investment of more than €800 million, reports Efe.

Of the projects underway, the director highlighted the shopping centre in Benidorm (Alicante), whose construction has already commenced and which is expected to open in 2020. In his opinion, the increase in visitor numbers and sales at shopping centres suggests “that returns have the potential to rise”.

The director explained that some of the investment planned for the coming years will be spent on improving its assets so that “they are more than just a place to shop”. In this sense, Solía advocates transforming them into centres for meeting up, having fun and being entertained, for enjoying new gastronomic experiences and with higher standards in terms of energy efficiency and sustainability.

In terms of future possible purchases, Solís said that the company’s intention is to incorporate new assets that are already operational, although, for the time being, it does not have any operations on the table.

In Spain, Unibail-Rodamco owns a dozen shopping centres and has two more under development. Its most high profile assets include Parquesur and La Vaguada (in Madrid) and Les Glòries and La Maquinista (in Barcelona), worth around €3.7 billion.

Westfield

Unibail-Rodamco, which has a presence in 11 European countries, reached an agreement at the end of 2017 to purchase its Australian rival Westfield for $24.7 billion (€19.8 billion).

The operation will result in the creation of a colossus with a gross asset value of €61.1 billion and a presence in 13 countries. Following the integration, Unibail-Rodamco will extend its competitive distance over its main European rivals, Klépierre and Hammerson. Indeed, one month ago, the latter announced an agreement to purchase Intu and grow in the shopping centre segment.

Original story: Expansión

Translation: Carmel Drake

More Than 1 Million People Visit Plaza Río 2 In <1 Month

13 November 2017 – Press Release

On its first two days of opening (20 and 21 October), the Plaza Río 2  shopping centre recorded its highest footfall figures, with 86,000 visitors on each day, taking the average entry rate to 6,000 people per hour. 

Plaza Río 2 expects to receive 1,500,000 visitors between Black Friday and 6 January 2018, which marks the end of the Christmas campaign.

The Plaza Río 2 shopping centre is taking stock of its performance since it opened on 20 October 2017. And it is doing so with a round number. In just over 20 days, it has broken the threshold of 1 million visitors. This data reflects the fact that the public like the wide range of possibilities on offer there.

During its first two days of opening (20 and 21 October), it recorded its highest footfall figures, with 86,000 visitors on each one of those dates, which represents a spectacular average entry rate of 6,000 people per hour. Plaza Río 2 opened on a date that was not particularly well suited to trading, given the weather, which makes the 1 million visitor figure even more impressive. If we look at the days of the week that have received the most footfall, Saturdays are the busiest day so far, followed by the bank holidays.

In terms of where the visitors are coming from, it must be said that they are arriving from both sides of the banks of the Manzanares River. Plaza Río 2 represents a breath of fresh air for the area from a commercial perspective and, moreover, has managed to entice people from other parts of the capital. In short, the new public is on the lookout for new leisure spaces. The managers of the centre are very happy with the results obtained so far and state that they hope to receive 1,500,000 visitors between Black Friday and 6 January 2018.

With 160 establishments filling its 40,000 m2 space, the centre managed by the property developer Sociedad General Inmobiliaria de España (LSGIE) offers a unique shopping experience that has been enhanced by a very interesting gastronomic proposal. The Mirador de Plaza Río 2, with the largest restaurant terrace in Madrid (3,000 m2), is home to 9 dining premises, catering for every culinary taste.

With an investment of €200 million and 100% of the stores leased before it opened, the centre has created 1,800 direct jobs and provided employment to 2,000 people during the construction phase. Moreover, it has managed to attract brands that are not typically found in shopping centres, such as the case of Victoria’s Secret, Armani Exchange and H&M Home.

Plaza Río 2 comprises 6 floors, 3 dedicated to shopping, 2 to parking and 1 to dining. Its modern, urban and state-of-the-art style has made it a commercial attraction for visitors to the Matadero and Madrid Río, as well as for residents of Usera, Arganzuela and Madrid centre. Natural light is the main protagonist of the building, which is equipped with the most advanced systems in terms of energy efficiency and sustainability. It has 35 bays for recharging electric vehicles and the building’s lights automatically adjust the intensity of the light they emit depending on needs.

The French property developer Sociedad General Inmobiliaria de España (LSGIE) has been responsible for undertaking this project, which represents its eighth shopping centre in Spain and its fifth in the Community of Madrid, after it first ventured into the capital in 1983 with Madrid 2 La Vaguada.

Original story: Press Release

Translation: Carmel Drake

Victoria’s Secret & Armani To Open Stores In Plaza Río 2 Shopping Centre

16 October 2017 – Expansión

On Thursday 20 October, the luxury Italian brand Armani is going to open a new store in Madrid. However, the new establishment is not going to be located on one of the capital’s high-end streets, such as Serrano or Ortega y Gasset, but rather in a shopping centre: the new Plaza Río 2.

Located on the banks of the River Manzanares, the Plaza Río 2 shopping centre is the latest project from the French real estate giant La Société Générale Inmobilière (LSGI). With a total investment of almost €200 million, the company has managed to secure tenants for the entire retail space, which measures 38,931m2, out of a total surface area of 127,873 m2.

The new tenants include household name brands, including several belonging to the Inditex group, such as Massimo Dutti and Zara Home, as well as new faces in the shopping centre business in Spain.

Such is the case of the aforementioned Armani group, which will open an Armani Exchange store for the first time in Spain; Armani Exchange is the Italian group’s brand that targets a younger audience.

Meanwhile, the underwear firm Victoria’s Secret, famous for its annual catwalk show with supermodels, will also make its debut in a shopping centre in Madrid with a store in Plaza Río 2.

Until now, the firm, owned by the US group L Brands, has had a presence in two shopping centres in Barcelona, as well as in the airports of Málaga, El Prat and Adolfo Suárez Madrid-Barajas, in the cosmetics and accessories format. Just a few days ago, it opened its first high-street store in the Spanish capital, in premises measuring 150m2 on Calle Fuencarral, which will be joined by its new establishment in Plaza Río 2 next week.

Another first in the new shopping centre will be the H&M Home line. The Swedish firm has reserved a surface area of 3,000 m2, spread over three floors, where it will open a store that will offer its H&M Home household collection for the first time in the centre of Madrid.

Plaza Río 2 is the eighth shopping centre that LGSI has opened in Spain. Through its subsidiary LSGIE, the company has promoted well-known establishments such as Madrid 2 La Vaguada, one of the first shopping centres that ever opened in Spain. In addition to this latest new opening, the group plans to renovate and expand its different assets in the Spanish market, according to sources at LSGIE.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

Madrid’s ‘Plaza Río 2’ Shopping Centre Will Open Its Doors On 20 October

27 September 2017 – Press Release

The Plaza Río 2 shopping centre, which is located on the banks of the Manzanares River and opposite the Matadero of Madrid, will open its doors on 20 October.

The new shopping centre, in whose construction almost €200 million has been invested, spans a commercial surface area of 40,000 square metres. It will be one of the iconic shopping centres in the capital and will house up to 160 stores for large domestic and international groups.

Plaza Río 2 is a comprehensive and innovative alternative, thanks not only to its extensive retail, leisure and gastronomic offering, but also its privileged location inside Madrid’s urban perimeter.

This ambitious project has been integrated into the Madrid Río initiative, and is the result of a collaboration between the public sector and a private company to achieve a positive impact on local employment, in harmony with the local environment.

It is the first major real estate project from the Town Hall of Madrid’s current government and it will provide a strong economic boost to the area. Plaza Río 2 has generated approximately 2,000 jobs during the construction phase and, following its opening, will create 1,800 permanent roles. In addition, it is going to offer the perfect combination of leisure, entertainment, fashion, gastronomy and services for the inhabitants of the neighbouring districts of Centro and Ribera del Manzanares.

The opening of Plaza Río 2 will be accompanied by the inauguration of the Mirador de Plaza Río 2, the largest restaurant terrace in the capital, covering a surface area of more than 3,000 m2. Visitors will be able to enjoy spectacular views of the city from the rooftop, together with a varied gastronomic offering. It is regarded as the pinnacle of the Madrid Río project.

Plaza Río 2 has been designed by the architecture firm Chapman Taylor and will comprise three retail floors and a fourth dedicated exclusively to restaurants. Natural light will feature heavily throughout the centre and the building will be equipped with the most advanced systems in terms of energy efficiency and sustainability.

The project has been promoted by La Sociedad General Inmobiliaria de España (LSGIE), taking its portfolio of shopping centres across Spain to eight. LSGIE’s first centre was Madrid 2 La Vaguada, and since then, it has embarked on several others, including:

Plaza Loranca 2, Gran Vía 2, Plaza Norte 2, Gran Plaza 2, La Villa2, and Plaza Mar 2. For management purposes, LSGIE relies on the ‘Company for Shopping Centres in Spain’ or ‘Sociedad de Centros Comerciales de España’ (SCCE) which offers its services, knowledge and experience in this sector.

Original story: Press Release

Translation: Carmel Drake

Unibail Commits To Invest €700M In Spain Over 7 Years

15 June 2017 – Expansión

The Franco-Dutch company Unibail Rodamco, the largest commercial real estate company in Europe, has decided to strengthen its commitment to the Spanish market, with the renewal of its management team and the launch of an ambitious investment plan for the next seven years.

The real estate company, which owns 13 shopping centres in Spain, has reorganised its management committee in the country. The most significant change has come in the form of the replacement of its most senior director, Simon Orchard – the CEO in Spain for the last 25 years will hand over the baton to Benoît Dohin, who has served as the subsidiary’s Director of Operations until now. The change will be effective from 30 June, according to sources at Unibail Rodamco.

Benoît Dohin holds a degree from HEC. In 2006, he joined the real estate group, where he has held several management positions, working in operations as well as on the merger between Unibail and Rodamco, and the acquisition of La Maquinista. In 2014, Dohin joined the team in Madrid as Director of Operations.

Following Dohin’s incorporation, Unibail’s management committee in Spain will comprise Javier Solía, Director of Development, who will also head up the Investment team going forward; Enrique Illan, Finance Director, who will also lead CSR; Laetitia Ferracci, who will replace Dohin as Director of Operations; Marta Bartolomé, Director of HR; and Ángeles García, Head of Legal.

The new management team will tackle the company’s new strategic plan, with the aim of strengthening its position in the Spanish market. Currently, the company owns a portfolio of 13 shopping centres in Spain (including La Vaguada in Madrid and Bonaire in Valencia) worth €3,556 million, which together receive 126.2 million visitors per year.

Investment plan

Unibail Rodamco plans to invest €677 million between now and 2024 on major projects, a figure that will also cover other expenditure on smaller projects.

Its plans include both the transformation of its existing centres, as well as the launch of new properties. In this vein, Unibail is working on the construction of a new shopping centre in Benidorm, measuring 58,000m2. The company plans to invest €200 million in this project and inaugurate it in 2020. In addition to the centre in Benidorm, the group has projects underway in Palma de Mallorca, where it owns a plot of land for the development of a new centre; in Barcelona and San Sebastián.

At the end of this year, Unibail plans to inaugurate the expansion of the Glòries shopping centre in Barcelona, in which it will invest another €140 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

GreenOak Buys ‘Sevilla Factory’ Shopping Centre For €15M

10 July 2015 – Expansión

The French-Dutch group Unibail Rodamco, one of the largest shopping centre owners in Europe, has closed the sale of one of its assets in Spain: the Sevilla Factory.

According to the Spanish Association of Shopping Centres, the property, which opened in the year 2000, has a constructed surface area of 20,000 m2, of which almost 16,000 m2 comprises retail space, and is spread across one floor. In addition, the shopping centre has 1,200 parking spaces.

The new owner of the centre is the fund GreenOak. That fund closed one of the largest shopping centre transactions in Spain last year, together with Baupost and the Spanish real estate company Lar, when it acquired seven properties in Madrid, Málaga, Barcelona, Burgos and Alicante. It paid €160 million to Vastned for those properties. According to real estate sources, the fund will now spend €15 million on Sevilla Factory.

Knight Frank has advised Unibail and Deloitte’s RE team has advised GreenOak. Both have declined to comment on the deal.

Background

Through this transaction, Unibail Rodamco continues with its plans to divest its shopping centres in Spain that have lower footfalls. Sevilla Factory receives an average of 1.9 million visitors per year.

To this end, in recent months, the company has sold several shopping centres and has been preparing new deals. In December, Unibail sold the Habaneras shopping centre in Alicante to the US fund Harber for €65 million. Whilst a few months earlier, it sold Albacenter to the Socimi Lar España for €28.4 million.

Now, the French-Dutch real estate company is considering selling Equinoccio in Majadahonda (Madrid) and Barnasud in Barcelona. Unibail Rodamco is also the owner of other shopping centres in Spain, such as La Vaguada and Parquesur in Madrid and Splau in Barcelona.

Meanwhile, GreenOak is one of the funds that is backing Spain most heavily at the moment. Since its creation in 2010, it has invested around $2,500 million. Now it is focused on four key markets: USA, Japan, England and Spain.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake