Tag: outlets

British Real Estate Firms May be Forced to Sell their Shopping Centres in Spain

16 June 2019 – Expansión

Two of the largest British real estate companies with interests in Spain are considering selling off some or all of their assets on the Iberian peninsula in light of the challenging climate in the retail sector at home.

The bankruptcy and restructuring of several high-street stores – including the department store group Debenhams and the owner of Top Shop, Arcadia – are leaving many premises in the UK empty. As such, questions are being asked about the debt on the balance sheets of the landlords of those properties, causing a rethink in their overseas strategies.

In this context, Intu Properties and Hammerson have both launched asset sales plans in an attempt to raise GBP 600 million and €500 million, respectively. In Spain, Intu owns 50% of Xanadú (Madrid), Puerto Venecia (Zaragoza) and Parque Principado (Asturias), and is also building a new complex in Málaga. It would likely sell its stakes to its existing partners – TH Real Estate in the case of Xanadú and CPPIB in the case of Puerto Venecia and Parque Principado – although it is also holding conversations with third parties in order to maximise the price of any potential sales.

Meanwhile, Hammerson, which specialises in outlet stores, is considering selling some of its shares in the Las Rozas Village (Madrid) and La Roca Village (Barcelona). It owns direct stakes in both of those complexes, as well as a 25% in Value Retail, a company that holds stakes in 9 outlets across Europe, including Las Rozas and La Roca. In total, Hammerson owns 41% of La Roca and 38% of Las Rozas.

Nevertheless, in parallel, Hammerson is looking to increase its stake in Vía Outlets from 47% to 50%. Vía Outlets is another outlet group, worth GBP 400 million, which owns 11 centres across Europe with 2 in Spain, specifically, in Mallorca and Sevilla.

Original story: Expansión (by Roberto Casado)

Translation/Summary: Carmel Drake

Savills IM: Inv’t of €500M per Year Until 2022 Following Purchase of Aguirre Newman

26 June 2018 – Eje Prime

Savills Investment Management (Savills IM) is getting its chequebook out in Spain. The fund manager of the real estate consultancy firm is looking for new investments in the country six months after integrating Zaphir Asset Management into its structure under the framework of the acquisition of Aguirre Newman by Savills. Savills IM’s plans involve investing €500 million per year in Spain until 2022.

According to explanations provided by Fernando Ramírez de Haro, Director of the Savills IM office in Spain, speaking to Eje Prime, the fund manager forecasts building an asset portfolio on the Iberian Peninsula worth €2 billion, up from its current value of €480 million.

The company is now starting an ambitious positioning strategy in Spain, “having completed the integration of Zaphir”. Ramírez de Haro, who leads Savills IM’s office following the corporate operation, served as the Director General of Zaphir since 2007. Savills announced the acquisition of Aguirre Newman in July last year, but the operation was not completed until December when Savills IM integrated Zaphir.

The company is currently analysing investments worth €750 million in Spain, although the group is also considering entering the Portuguese market. Even though in 2017, the company’s most active markets were the United Kingdom, Italy and Japan, the forecasts of Ramírez de Haro indicate that Spain will become the fourth most important European market for the group, behind the United Kingdom, Italy and Germany.

Savills IM’s current portfolio in Spain comprises thirteen assets or projects. Half of them correspond to investments in offices, 25% to retail, 17% to residential and 7% to logistics, according to Ramírez de Haro. One of the most recent operations signed by the group was the purchase, in May, of a hypermarket operated by Eroski in San Sebastián for €48 million.

The executive maintains that the company is looking for opportunities across the four segments, especially in retail and offices. “I do not want to say that logistics is not important, it is and very much so, but it is the segment that is suffering from the most acute shortage in terms of supply”, he said. “In terms of retail, a negative vision is coming from the USA, but for us, that is not the case, provided you look for assets that are not so dependent on online sales, such as retail parks, high street stores, outlets and shopping centres linked to food”, he maintains.

Savills IM combines three types of operations: the first is the management of funds raised in Europe (especially in Germany): the second involves the mandates of global investors; and the third is to support value-added funds in their investments in Europe. Whilst in the first case, the average investment in terms of own funds is between €20 million and €80 million, international mandates tend to be upwards of €100 million and value-added operations typically range between €15 million and €100 million.

The fund manager has a workforce of sixteen people in Spain, fifteen of whom come from the former Zaphir structure and one from Savills IM. The group expects to have 22 employees in five years time.

On the global stage, Savills IM has a workforce of 300 employees and eighteen offices. In 2017, the group recorded transactions worth €5.5 billion: €4.5 billion in Europe and €1 billion in Asia. The company plans to spend €1 billion in own funds in 2018 for the acquisition of new assets in Europe and Asia.

Original story: Eje Prime (by J. Izquierdo & P. Riaño)

Translation: Carmel Drake

Carmila Secured 91 New Tenants During H1 2017

29 August 2017 – Expansión

Carmila, Carrefour’s real estate subsidiary, has closed the first half of the year having signed 213 commercial operations in Spain, according to a statement issued by the company.

Specifically, the company led by Sebastián Palacios signed 91 new rental operations during H1, corresponding to an increase in the gross leasable area of more than 10,000 m2.

In addition, Carmila signed 122 rental contract renewals with operators that decided to continue their agreements with the company, covering another approximately 10,000 m2 in terms of surface area.

By retail sector, the largest volume of space secured was recorded in the restaurant segment, with 13 new contracts. Specifically, brands such as Burger King, Gino’s, Lizarrán and La Tagliatella signed up to join Carmila’s centres.

That segment was followed by the fashion sector, with the signing of new contracts with brands such as Zara, Bershka and Free Base.

For the second half of the year, Carmila forecasts “very favourable” results, not only in terms of new contracts but also renewals.

In this sense, during the second half of the year, the company will launch the renewal of the rental contracts for eight shopping centres, including the Los Patios Shopping Centre in Málaga.

Carmila was constituted in April 2014 by Carrefour, which controls 42% of its capital, with the aim of obtaining value from the shopping centres located next to its hypermarkets. The other shares in the company are held by large institutional investors.

According to the latest published data, Carmila owns 70 assets in Spain worth €1,100 million.

Original story: Expansión (by R. Arroyo)

Translation: Carmel Drake

Carmila Signed 437 Lease Operations In 2016

26 January 2017 – Cuatro

Carmila, the real estate subsidiary owned by Carrefour, has completed its third year of activity in Spain, during which time it has signed 437 commercial lease operations, according to a statement made by the company.

Specifically, the company led by Sebastián Palaciones signed 206 new operations corresponding to a gross leasable area (GLA) of 20,662 m2, and also secured the continuation of 231 strategic clients with contract renovations covering a total surface area of 22,655 m2.

Similarly, the firm, which has more than 1,100 specialty leasing contracts in its portfolio, confirmed the company’s commitment to this retail format, which includes the opening of stands, promotional events for leading brands and the innovative concept of pop-up stores, amongst other activities.

The most active regions in terms of rental space leased in 2016 were Andalucía, accounting for 27% of the operations signed, followed by the Community of Valencia (17%), Madrid (14%), Galicia (7%) and Castilla La Mancha (6%).

By retail sector, the largest share of surface area was leased to restaurants, with 45 new contracts, followed by fashion stores, with 25 contracts, whilst telephone companies were ranked in third place, with 20 contracts.

Carmila was constituted in April 2014 by Carrefour, which controls 42% of its capital, with the aim of generating value from the shopping centres located next to its hypermarkets. The other shares in the firm are owned by major institutional investors.

In Spain, the company owns 70 shopping centres, spread across 32 provinces in high-end strategic locations. Its assets are worth more than €1,000 million and the company also manages almost 2,500 stores and medium-sized outlets.

Original story: Cuatro

Translation: Carmel Drake

Neinver & Tiaa Acquire Six New Outlet Centres

24 November 2016 – Expansión

The Spanish real estate firm Neinver and the financial services firm Tiaa have signed an agreement to acquire six outlet centres in Europe, three of which are located in Spain.

Through their joint company, the firms have acquired a block of six outlets which Neinver has been managing and whose value amounts to €700 million. The funds belonged to the fund Irus European Retail Property Fund, in which Neinver holds a 25% stake.

The overseas outlets are located in Poland (Poznan) and Italy, specifically Castel Guelfo, close to Bolonia, and Vicolungo, located in the vicinity of Milan and Turin.

In Spain, the company has acquired Neinver’s three large outlets, located in San Sebastián de los Reyes, Las Rozas and Getafe. In addition, the alliance between Neinver and Tiaa has also finalised the purchase of the Nassica shopping centre, which they have purchased from KKR for €140 million.

Once this latest operation has been signed, which is expected to happen during the first quarter of 2017, the joint venture will have a gross asset value (GAV) of more than €1,200 million, making it one of the most important investors in commercial assets in the country.

At the beginning of 2015, Neinver and TH Real Estate (a subsidiary of Tiaa) signed a strategic alliance, in which they each hold a 50% stake, to create a leading platform for outlet centres in Europe. This joint company already owns three centres in Poland and one in France, as well as the Viladecans The Style Outlet, which opened recently in Barcelona.

Original story: Expansión (by R.Ruiz)

Translation: Carmel Drake