Castellana Properties Incorporates Unibail’s Shopping Centres into its Portfolio

28 November 2018 – Eje Prime

Castellana Properties is now the ninth largest Socimi in Spain. The company, which is controlled by the South African fund Vukile, has doubled the value of its portfolio to €900 million by incorporating the firm Morzal Property into the fold. Morzal is the vehicle through which Vukile purchased four shopping centres from the giant Unibail-Rodamco-Westfield in July.

The General Shareholders’ Meeting of Castellana approved the purchase of 100% of Morzal at the same price as the initial operation was closed, according to Eje Prime. The incorporation of the company, which paid Unibail-Rodamco-Westfield €490 million in July for its four assets, has been carried out through a capital increase subscribed by a non-monetary contribution of Morzal’s share capital, attributing a value of €6 per share to the shares of Castellana Properties.

Following this incorporation, the Socimi has increased its portfolio with the following shopping centres: Los Arcos (Sevilla), Bahía Sur (Cádiz), El Faro (Badajoz) and Vallsur (Valladolid). In total, the manager is adding a gross leasable area (GLA) of 121,300 m2 to reach a total of 318,622 m2 distributed all over Spain.

The market capitalisation of the company now amounts to €460 million, whilst the average value of its assets has increased from €27 million to €48 million, and its vacant space has decreased from 3.3% to 1.8%.

“The acquisition of these four shopping centres significantly strengthens our portfolio and reaffirms our commitment to the retail real estate sector in Spain”, said Alfonso Brunet, CEO of Castellana Properties.

Similarly, in terms of the future, Vukile has the commitment to inject another €200 million into Castellana over the coming years, as revealed by Eje Prime. In April, the fund subscribed an agreement with the Socimi to undertake capital increases for that maximum value in the event that it does not find the necessary partners to continue buying retail parks and shopping centres with, “given the need for financing to undertake such investments”.

Original story: Eje Prime 

Translation: Carmel Drake

Unibail-Rodamco Puts 4 Shopping Centres Up For Sale

14 March 2018 – Eje Prime

Unibail-Rodamco is getting rid of a package of assets that are non-strategic for the group. The French giant has put the following complexes up for sale: Los Arcos, in Sevilla; Bahía Sur, in Cádiz; Vallsur, in Valladolid, and El Faro, in Badajoz, on the basis that they do not fulfil the group’s needs in the Spanish market, according to sources close to the company speaking to Eje Prime.

According to the same sources, “the assets that the group wants to divest are profitable, but due to their location, size and strategy, the firm has decided to get rid of them”. Unibail-Rodamco has entrusted the sale of these four assets to the real estate consultancy firm Cushman&Wakefield.

Sector sources say that, initially, the Equinocio shopping centre in Madrid was also going to be put on the market alongside the other four assets, however, Unibail-Rodamco must have changed its mind at the last moment. The price that Unibail-Rodamco has set for each asset is unknown.

The sale of these four assets forms part of the operation that the firm carried out last year with Barnasud, the complex acquired by Meridia Capital, a Catalan fund owned by the businessman Javier Faus, which paid Unibail-Rodamco €35 million for the asset.

In recent years, the French group has spent a significant amount on the renovation of some of its shopping centres in Spain. The most ambitious project was the Glòries shopping centre, where the company invested €150 million on its complete transformation. In total, the transformation added 12,500 m2 of public space, spread over 8,500 m2 of new streets, 2,500 m2 of urbanisation and pavements around the site and 1,500 m2 of new green space in the 22@ neighbourhood.

Whilst Unibail-Rodamco waits to receive the green light for the expansion of one of its main shopping centres in Spain, La Maquinista, the group’s portfolio in Spain comprises 12 shopping centres, with Barcelona and Madrid as the cities that are home to the most complexes. Whilst in the Catalan capital, the company operates La Maquinista, Glòries and Splau, in Madrid it manages La Vaguada, Equinoccio and Parquesur shopping centres.

In the rest of the country, Unibail-Rodamco has one complex in Valencia, Bonaire; one in Cádiz, Bahía Sur; one in Sevilla, Los Arcos; Vallsur, in Valladolid; El Faro, in Badajoz, and one in San Sebastián, which operates under the name Garbera.

Currently, the group led by Christophe Cuvillier has a portfolio in Spain worth €3.6 billion, which receives 126.2 million visitors per year. These assets represent 10% of the firm’s global portfolio.

Double-digit growth in Spain

The company ended last year in the Spanish market with a net profit of €161 million, up by 10.3% compared to 2016, when the group earned €146 million.

In this way, Spain has become one of the highest growth countries for Unibail-Rodamco. In all of the markets in which it operates, the French company recorded a net profit of €1.35 billion in 2017, up by 5.8% compared to the previous year, when its earnings amounted to €1.27 billion (…).

Original story: Eje Prime (by Custodio Pareja)

Translation: Carmel Drake