Tag: MediaMarkt

Funds, Socimis, El Corte Inglés & Seur Compete in the Urban Logistics Segment

9 March 2019 – Expansión

Investors and logistics operators alike are setting their sights on urban hubs to benefit from the boom in e-commerce. According to data from CBRE, investment in the logistics sector is thriving – it amounted to €2 billion in 2017, €1.5 billion in 2018 and is forecast to reach €1.2 billion in 2019. Active players in the sector include the Singapore sovereign fund through its Socimi P3, Blackstone, Prologis, Logicor, CBRE GI and Montepino, and Merlin, amongst others.

Urban hubs are gaining significant weight in the sector thanks to their ability to reduce transport costs, avoid the new traffic restrictions and resolve the problem of product returns.

According to the CNMC, Correos and Correos Express currently deliver 44% of all packages in Spain, followed by MRW and Seur (14% each) and DHL (4.5%).

In terms of retailers operating in this space, Amazon set the ball rolling by opening a logistics centre in the heart of the Eixample district of Barcelona and in the Méndez Álvaro area of Madrid. Other large retailers are following suit by opening distribution centres inside major cities, such as Decathlon, MediaMarkt, Ikea, Aki, Carrefour and Worten.

The investment firm Azora has also announced its intention to invest €250 million in logistics hubs in urban centres, which it will lease to delivery specialists such as Seur, DHL and MRW. Seur already has eleven urban logistics centres and plans to open another nine this year. Meanwhile, DHL already has ten such hubs and plans to open two more this year.

In the same vein, the department store giant El Corte Inglés has also launched an ambitious omnichannel logistics strategy, which will convert its 94 shopping centres into storage points for the management of online purchases.

Original story: Expansión (by I. de las Heras & R. Arroyo)

Translation/Summary: Carmel Drake

MediaMarkt to Expand its Logistics Hub in Madrid

7 March 2019 – Idealista

The consumer electronics retailer MediaMarkt is going to expand its logistics platform in Pinto (Madrid) as part of its multi-national commitment to an omnichannel retail model.

Specifically, the surface area of the latest generation logistics platform is going to be extended from 30,000 m2 to 60,000 m2 by next summer, with the building work due to start in December.

In this way, from next summer, the logistics platform in Pinto will centralise all of the company’s cross-docking operations and will operate as the distribution centre for its network of 87 stores as well as for its online customers.

Original story: Idealista 

Translation: Carmel Drake

Lar España has already Leased 60% of Palmas Altas Shopping & Leisure Centre (Sevilla)

17 May 2018 – Inmodiario

Palmas Altas is progressing well. More than 60% of the gross leasable area (GLA) in the shopping and family leisure complex, which is owned by Lar España, has already been leased. Specifically, agreements have now been signed to occupy 50 stores, which span 42,581 m2. The shopping centre will have 100,000 m2 of retail and family leisure space in total and comprise almost 150 stores.

The Socimi expects to lease more than 90% of the complex by the end of 2018. Lar España forecasts that Palmas Altas will generate annual rental income of around €15 million from the lease of its stores.

Those who visit Palmas Altas will find an extensive offering of leisure, fashion, household goods, restaurants and entertainment at Sevilla’s largest retail and leisure complex. That will be complemented with public spaces and a lake spanning 6,000 m2. Specifically, 60% of the total surface area will be dedicated to commercial space and 40% to restaurants, leisure, sports and green space.

Lar España has reached agreements with major brands, such as Mercadona, which will manage the complex’s hypermarket, and MediaMarkt, which will open a large store dedicated to the sale of household appliances, IT products and consumer electronics. The leisure offer will include Yelmo’s latest generation cinema screens and an Urban Planet space measuring 3,000 m2, which will include a wind tunnel and aquatic activities around the lake, amongst other options.

In the restaurant area, highlights will include Five Guys, McDonalds, 100 Montaditos, Starbucks and Friday’s, as well as several Andalucian operators. The fashion brands that have already confirmed their presence in Palmas Altas include Primark, Levis, Jack & Jones, Diechmann and Foot Locker (…).

Progress of the construction work

The work to build Palmas Altas, which began in August 2017, has already completed the foundation phase (…). In total, almost 30% of the project has been finished.

The Palmas Altas project will result in the creation of 4,800 jobs. Of those, 1,500 are related to the construction of the retail complex and the remaining 3,300 will be permanent jobs. This represents a significant wake-up call for the economy and creation of jobs in Sevilla: in fact, Lar España prioritises the contracting of local suppliers for the construction and maintenance of its assets.

The total investment in the development of this commercial and family leisure complex will amount to €250 million, which represents the largest urban planning investment in the city in the last decade and the Socimi’s most valuable asset to date.

Original story: Inmodiario

Translation: Carmel Drake

Lar Spends €6M on Renovation of Megapark Barakaldo Shopping Centre

10 April 2018 – Eje Prime

Lar is giving one of its assets a makeover. The Socimi owned by the Lar España group has started work on the complete renovation of the Megapark Barakaldo shopping centre, for the first time since its construction in 2004, which will involve an investment of €6 million, according to a statement issued by the group.

The shopping centre, which is owned by Lar España Real Estate Socimi, has been managed by Neinver since 2016. Neinver, which is directing the renovation work, is one of the leaders in the development and management of outlet centres in Spain and the second largest operator in Europe.

The renovation of Megapark is going to be carried out in two phases. Firstly, work will be undertaken in the retail space; this has already begun, without affecting the daily activity of the centre, and is due to be completed in November 2018. Subsequently, work will begin on the leisure area to modernise and unify its image with the rest of the park.

“During this first phase, the renovation of Megapark Barakaldo’s retail area will be reflected primarily in a more current image, which is going to be accompanied by the renovation of all of the façades, outdoor spaces and common areas”, explain sources at the group. For this, an urbanisation plan has been developed, which includes introducing urban design furniture and children’s areas.

The general remodelling of the centre is also being accompanied by the renovation of some of the retail stores such as those of Mediamarkt, Kiabi, Merkal and Forum, as well as the expansion of the Conforama store by 1,200 m2 to reach 6,200 m2.

Megapark Barakaldo is located fifteen minutes from the centre of Bilbao and is the only retail and leisure area of its kind in a 400 km radius. In 2017, it received more than 10 million visitors and it has a surface area of 128,000 m2.

Original story: Eje Prime

Translation: Carmel Drake

French Fund Corum Will Invest €450M-€500M In Europe In 2017

8 March 2017 – Expansión

The real estate fund manager Corum Asset Management has placed its focus on Spain. The firm, created in 2011 and with offices in Paris and Amsterdam, has closed 2016 with a record investment figure of €328 million.

In the case of Spain, the manager chose the market to carry out its first operation outside of France, acquiring its first asset in 2013: a retail property in Tarragona, which is leased to MediaMarkt.

Three years later, in May last year, Corum sold that asset to a fund managed by Ciloger for €9.43 million. “2016 was a record year in terms of transactions, with a deal volume amounting to €360 million, of which €328 million involved acquisitions. In addition, we made our first sale in an overseas market in 2016, in this case in Spain, where we achieved a significant return”, explained Philipp Cervesa, Head of Investments at Corum AM.

Besides that sale, the French manager closed three purchases amounting to €41.4 million in Spain, involving logistics assets, during the year. Specifically, in April, it acquired two platforms in Gerona and Guadalajara, with a combined surface area of 35,670 m2. Three months later, Corum AM paid more than €24.8 million for a logistics building leased to the company Trabis. “Our strategy is to bet on real estate cycles. We are investing in Spain because it offers good diversification and is a very dynamic market”, said Cervesi.

Both operations achieved a return of around 7.6%. “We invested heavily between 2013 and 2014, when the market fell, and thanks to that, we have undertaken some good deals, such as the sale of the property leased to MediaMarkt, which we sold last year for a hefty profit”. A high return that the manager forecasts it will maintain in 2017. “We are looking for assets with long-term lease contracts and high returns, of around 7%, he added.

This year, the manager, which invests directly through an Asset Management fund, has set itself the objective of increasing its portfolio to €500 million. “Our strategy for 2017 is to invest between €450 million and €500 million in the Eurozone. We have not set ourselves any country limits, which means that we could buy an unlimited amount in Spain”, explained the Head of the fund.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake