Tomás Olivo in Talks to Acquire 150,000 M2 of Land in Valdebebas

3 October 2019 –Tomás Olivo’s socimi General de Galerías Comerciales (GGC) is negotiating to acquire 145,790 square meters of commercial land in Valdebebas, where it is looking to develop the largest shopping centre in Spain.

The land is said to be worth 200 million euros, though GGC has yet to offer that much.

The future shopping centre will include 36,500 square meters of office buildings, along with more than 24,500 square meters or parks and green areas.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Barings Lends Kronos €40 Million to Finance Construction of New Shopping Centre

6 August 2019

The Kronos Investment Group announced that it had arranged a €40-million loan with Barings to finance the construction of a new shopping centre in the town of Dos Hermanas, Seville. The investment manager has lent 40 million euros to the union between the developer and another company to build a commercial park of 48,646 square meters and 2,000 parking spaces.

The new complex will have 64 stores, 70% of which have already been pre-leased. Construction is set to begin shortly and the mall is slated to open by the summer of 2020.

Original Story: Eje Prime

Adaptation/Translation: Richard D. K. Turner

Heraclès Seeks to Build Two New Shopping Centres in Madrid and Linares

10 July 2019 – Richard D. K. Turner

The French investment company Heraclès is in negotiations to buy an 18,000-m2 plot of land in Madrid and another 14,000-m2 plot in Linares, Jaén, for the construction of two new shopping centres. Negotiations for the site in Madrid are expected to conclude by the fall.  

Heraclès has already begun sales of stores in the new retail park in Linares to facilitate acquisition of the land and request the necessary licenses. The firm expects to finalise its purchase in the coming months.

Original Story: Eje Prime – Marc Vidal Ordeig


Kronos Properties Launches WAY to Invest €500 Million in Commercial Market

6 February 2019

WAY has already launched two projects, one in Dos Hermanas (Seville) and another in San Cibrao das Viñas (Ourense), which will involve investments of 90 million and a commercial area of ​​66,700 square meters.

Kronos Properties is making the leap to the commercial market, launching WAY, a firm specialising in commercial properties. The brand has a budget of 500 million euros for investments that it intends to allocate to new-generation, innovative spaces with large areas dedicated to leisure and food service.

Saïd Hejal, a founding partner and general counsel for Kronos Properties, said in a statement that “the market is demanding an evolution to the concept of commercial projects, in addition to the creation of different spaces that contribute to creating a unique experience for the entire family.”

The first two projects, both of which are already underway, are located in Dos Hermanas, Seville, and San Cibrao das Viñas, in Ourense, and represent an investment of 90 million euros for a commercial surface of 66,700 square meters.

WAY Dos Hermanas is looking to reformulate the shopping centre concept, combining large areas with recreational spaces. Construction will likely be completed in the spring of 2020 and will generate 700 direct jobs. WAY’s second project is the WAY San Cibrao, a commercial space that is expected to open in the spring of 2020 and generate 250 new jobs. With these new projects, Kronos Properties is committing itself to the commercial market after having previously focused exclusively on residential developments.

Original Story: EjePrime

Translation: Richard Turner

Vidanova Parc Shopping Mall to be Inaugurated on September 27

10 August 2018

The official inauguration of Vidanova Parc is scheduled for September 27, according to Lar España Real Estate’s project director, José Antonio García. The shopping centre will thus open to the public on the last weekend of September. However, the new shopping centre, the most important one between Valencia and Castellón, is already operating on a partial basis, since Leroy Merlin opened its doors to the public on June 22 to take advantage of the summer months, which are some of the most important, in terms of sales, for the French multinational.

Mr García highlighted the fact that 100% of the stores have already been allocated to different operators. As has been reported, Vidanova Parc will have about 40 top-flight brands, including Leroy Merlin, Decathlon, C&A, Worten, Urban Planet, Yelmo Cinemas, Norauto, Fifty Factory, Conforama, Casa y Más y Más, guaranteeing a well-rounded commercial offering encompassing sports, DIY, fashion, entertainment and leisure. There will also be a food hall, with restaurateurs such as Grupo Vips (Ginos and Smart VIPs), Burger King, KFC, Lizarrán, Volapié and Pans & Company, among others.

The stores will be dispersed among the more than 45,000 square meters of gross lettable area at the complex, which occupies a total of 120,000 square meters, including parking for more than 2,350 vehicles.

Lar España Real Estate stated that Vidanova Parc has an excellent location, considering that nearly 250,000 people live close to the shopping centre, and also factoring in the thousands of tourists who spend their vacations in the region.

The shopping centre underwent a total investment of some 93 million euros. Lar España Real Estate contributed €53 million, while different operators contributed the rest. One of the larger secondary investors was Leroy Merlin, which opened an 8,000-m2 store within a 10,000-m2 plot of land, investing 17 million euros.

Inauguration initially slated for 2012

On February 9, 2012, at the offices of the company Alser, Julián Castelblanque and José Antonio García, a press conference was held to present a project for the then-named Cruce de Caminos Shopping Centre, whose opening was scheduled for 2014. However, the project had to overcome all sorts of obstacles and complications that eventually tripled the time needed to open the mall, because instead of 2014, it will finally be inaugurated in 2018, four years later.

Original Story:

Translation: Richard Turner

AECC: Sales At Spain’s Shopping Centres Rose By 3.6% In 2016

3 March 2017 – Mis Locales

The health of the Shopping Centre and Retail Park sector in Spain is still good. In 2016, sales rose by 3.6% compared to 2015, to reach €42,464 million. The market share held by Shopping Centres and Retail Parks over the Spanish retail sector as a whole remained stable at 17.8% and average sales per visit grew by 2.1% with respect to 2015.

It is estimated that 1,935 million visits were made to Shopping Centres and Retail Parks during 2016, up by 1.5% with respect to the previous year, according to data from the Spanish Association of Shopping Centres and Retail Parks (AECC).

Investment through transactions in Shopping Centres and Retail Parks amounted to €2,000 million in 2016, with 19 operations closed, involving domestic and international investors.

The importance of this sector within the country’s overall economy is also clear, thanks to the employment being generated. Six new shopping centres were opened in 2016, with the resulting creation of 4,500 new jobs.

There are currently 550 Shopping Centres and Retail Parks in Spain, with a combined GLA (Gross Leasable Area) of 15,595,800 m2, which are home to almost 33,500 shopkeepers. Between 2017 and 2019, 27 new projects are expected to be launched, including new centre openings and extensions, to create more than 1,300,000 m2 of new retail space.

For Javier Hortelano de la Lastra, the President of the Spanish Association of Shopping Centres and Retail Parks, the sector is the key to the consolidation of the Spanish economy “given that during 2016, it continued to grow not only in terms of sales but also in terms of visitor numbers and the creation of employment”. Hortelano also emphasised the high profile role that shopping centres and retail parks play in the real estate context of the country.

Original story: Mis Locales

Translation: Carmel Drake

JLL: Inv’t In Retail Sector Falls By 27% In H1 To €1,278M

20 September 2016 – La Vanguardia

Real estate investment in the retail sector – which includes shopping centres, retail parks and other premises – decreased by 27% during the first half of the year to €1,279 million, as a result of the shortage of products in the market, according to data published yesterday by the real estate consultancy JLL.

Despite the decrease in investment during the first half of the year, the firm expects the full year to close roughly in line with 2015, when investment exceeded €3,000 million. Moreover, it does not detect any negative impact as a result of the political instability in Spain at the moment.

Spain accounted for 7% of all retail investment in Europe during the first half of 2016, to stand in fourth place in the overall ranking.

High street stores and shopping centres accounted for 25% and 23% of total investment in H1 2016, respectively, well below the 48% that each one of those segments represented a year ago.

Despite the decrease in investment, JLL is convinced that the fall is not indicative of a deceleration in the market. The number of operations completed during the first half of the year amounted to 38, exceeding the 23 signed a year earlier.

Nevertheless, the average size of those transactions decreased by half to €40 million. Most, 18, corresponded to high street stores, amounting to €310 million in total, compared with 14 operations amounting to €860 million in 2015.

Socimis accounted for 16% of the total investment with €106 million.

In terms of rents, Paseo de Gracia recorded an increase of 11.6% to €240/sqm/month, although Portal del Ángel in Barcelona was crowned the most expensive street in Spain after rents there increased by 8.3% to €260/sqm/month.

In Madrid, Preciados is the most expensive street, with rents of €255/sqm/month, following an increase of 6.25%. It is followed by Serrano (€240/sqm/month and an increase of 6.7%) and Gran Vía (€230/sqm/month, up by 4.5%).

The forecasts indicate that rents in Madrid will increase by 2.4% p.a. during the period 2016-2018 and by 1.7% p.a. in Barcelona.

In the case of shopping centres, rental prices reached €88/sqm/month and forecasts show that they will increase at an average annual rate of 2.2% between 2016 and 2018.

During this period, new shopping centre openings are expected to double after hitting a minimum of 343,000 sqm between 2013 and 2015.

Project highlights this year include: Parque Nevada (Granada), Sambil Outlet Madrid and Fan Mallorca Shopping. Between now and 2018, the following centres are also expected to open: Plaza Río; Open Sky Center; Viladecans The Style Outlets; Torre Village; Palmas Altas and Torrecárdenas.

According to the Director of the Retail Department at JLL, Sergio Fernandes, there are increasingly more players interested in developing new centres from scratch, as well as significant interest in both the sale and purchase of new centres.

JLL also highlighted the growing trend in terms of the opening of flagship stores, as well as the shortage of quality space, which is forcing retailers to convert other spaces from residential, office and leisure use into commercial properties.

One of the most noteworthy operations of this kind is the opening of a 5,000 sqm Zara store on Castellana 79 (in the building that previously housed Fnac), which is due to open at the end of 2016 or the beginning of 2017.

JLL expects returns to continue to be compressed over the next few months and that the average value of the shopping centre market will grow by 5.6% p.a.

Original story: La Vanguardia

Translation: Carmel Drake