Merlin to Invest €16M Remodelling Porto Pi Shopping Centre (Palma)

15 December 2017 – Última Hora

Merlin Properties, the listed real estate investment company (Socimi) and largest shareholder of the Porto Pi shopping centre, is going to invest €16 million to remodel and improve the asset’s commercial offer.

The Socimi, in which Santander and BBVA hold a stake, has set itself the objective of improving the centre to bring it into line with current tastes in the market.

Sources at Merlin Properties indicate that in the new era of shopping centres, the aim is to attract the greatest number of visitors “for convenience and experiences”.

The Socimi plans to extend the centre’s areas of activity beyond pure shopping, towards experiences. Moreover, it is keen to integrate the centre with e-commerce, through the constitution of a marketplace and by placing Amazon and Correos e-commerce purchase collection points, as well as pop-up stores and temporary outlets.

Merlin Properties estimates that these improvements, together with the management and natural growth of the assets, will allow it to increase its current annual revenues by 22% and to exceed a country-wide turnover figure of €500 million based on all of its planned projects, without having to buy new properties.

Amongst the most important investments are the €21 million that it plans to spend on the complete renovation of the Larios centre in Málaga and the €16 million that it plans to spend on Porto Pi in Palma.

The shopping centre in Palma receives 8.7 million visitors per year. The different phases of the construction work that are going to be carried out will be completed during the first quarter of 2020 (…).

The final objective is to consolidate Porto Pi’s dominant position at the commercial level in Palma with the maximum variety and diversification of products.

Original story: Última Hora (by J. L. Ruiz Collado)

Translation: Carmel Drake

Merlin To Invest €15.2M Renovating Valencia’s El Saler Shopping Centre

24 October 2017 – Expansión

Merlin is going to undertake improvements at its shopping centres on the basis that it considers that e-commerce “is not going to kill the physical shopping experience, but rather transform the way it is done”.

In this way, the Socimi is committed to improving its shopping centres to bring them into line with visitors’ current tastes. In its opinion, the “new era” of shopping centres will attract visitors on the basis of convenience and experience.

To this end, it is committed to expanding its centres’ areas of activity beyond just shopping, to include experiences. In line with this strategy, one of its major investments currently underway involves the shopping centre it has acquired in Alcorcón (Madrid), known as ‘X-Madrid‘.  There it will invest €31.8 million to convert the retail space into a leisure centre for experiences, where visitors will be able to go diving, surfing and climbing.

Moreover, the Socimi advocates the integration of shopping centres with e-commerce, including the constitution of marketplaces, housing collection points for online purchases from Amazon and Correos, as well as pop-up stores and temporary shops.

Merlin’s other notable investments in this segment include the €21 million it is spending on the complete renovation of the Larios Centre in Málag; the €3.8 million it will use to improve the façade and common areas of the Arturo Soria shopping centre in Madrid; the €15.2 million that will be used to renovate El Saler in Valencia; and the €16 million it will invest in the Porto Pi shopping centre in Palma.

Original story: Expansión 

Translation: Carmel Drake