Tag: Parque Corredor

Redevco on the Hunt for Mixed-Use Buildings to Join the Rental Housing Bandwagon

3 June 2019 – El Confidencial

A few months ago, Redevco, one of the largest players in the commercial real estate sector in Europe, announced the launch of a €500 million fund aimed at creating a pan-European portfolio of 2,500 rental homes. The aim is to focus primarily on the Netherlands and Germany, but with Spain and the UK accounting for a significant share.

In Spain, the company is now analysing various operations with the aim of closing one or more during the second half of this year. The shopping centre specialist is considering all kinds of strategies, from acquiring properties already for rent to teaming up with property developers and buying assets to renovate.

It is mainly focusing on mixed-used properties in Madrid, Barcelona, Valencia and Bilbao, with an average investment volume of around €20 million per asset. Its aim is to acquire entire properties, rather than small or dispersed assets and it is looking for two-bedroom homes with an average monthly rent of €1,000.

In Spain, Redevco’s commercial portfolio comprises 32 properties worth €800 million. It also operates a joint venture with Ares to invest €500 million in shopping centres, which currently owns the Mercado de San Miguel and Parque Corredor, both in Madrid.

Original story: El Confidencial (by R. Ugalde)

Translation/Summary: Carmel Drake

Redevco & Ares Invest €45M in the Renovation of Parque Corredor

26 September 2018 – Eje Prime

Redevco and Ares are pampering their new asset. Redevco Iberian Ventures, the joint venture between the two companies, is going to spend €45 million on the renovation of Parque Corredor, the retail complex in Torrejón de Ardoz (Madrid) that it purchased at the beginning of the year.

The owner expects the work to completely renovate the asset, which spans a surface area of 123,000 m2, to begin in 2019. Moreover, the company has already signed the renewal of Primark’s rental contract in the centre and is closing agreements for the incorporation of new chains.

The project will focus initially on the fashion area, creating new façades and accesses. It will also modernise the parking lot, which contains 4,000 parking spaces, and will renovate the common areas and the lighting.

The new design has been created by the architecture studio Chapman Taylor. The execution of the project will be led by the architecture studio Arpv and coordinated by Gleeds. Cushman&Wakefield is managing and marketing the retail spaces.

Redevco Iberian Ventures acquired 70% of Parque Corredor in February for €140 million. Another 20% is controlled by Alcampo and the remaining 10% is in the hands of small owners. Over the last twelve months, the complex has received 11 million visitors, 4% more than during the same period in the previous year. Its offer includes several Inditex chains, H&M, Mango, Kiabi and C&A.

Original story: Eje Prime

Translation: Carmel Drake

BNP Paribas: RE Inv’t Amounted to €2.45bn in Q1 2018

6 April 2018 – Expansión

The rate of growth of real estate investment in Spain is slowing down, although it retained its strength during the first quarter of 2018. The volume transacted during the 3 months to March amounted to €2.45 billion, having decreased by 27.5% with respect to the same period last year (€3.38 billion), a figure that included record operations such as the purchase of the Xanadú shopping centre for €560 million, which caused investment volumes to soar.

According to a report compiled by the consultancy firm BNP Paribas Real Estate, the retail segment led the investment ranking during the first three months of the year to account for 44% of the total volume transacted, in other words, around €1.08 billion. That was thanks to operations such as the sale of a portfolio of stores by Inditex to the German fund Deka for €370 million; the sale of Parque Corredor, in Torrejón de Ardoz (Madrid), for €200 million; and the sale of the Las Habaneras shopping centre in Orihuela (Alicante), for €160 million.

Retail was followed by the office and hotel segments, with a volume of around €350 million each, and the logistics segment with 10% of the total.

Residential assets also accounted for 10% of the total investment figure thanks to operations such as the purchase of a portfolio of 1,500 homes by Testa from CaixaBank for €228 million, whilst alternative assets gained traction to account for 7% of the total volume invested.

Assets

By type of investor, funds are becoming established as the main buyers of real estate, unseating the Socimis, which remain immersed in the asset management process and which are preparing to dispose of some of their assets.

David Alonso, Director of Research at BNP Paribas Real Estate, explains that the high volume operations currently in the pipeline indicate that the total investment figure for the year as a whole may well reach, or even exceed, the investment volume recorded in 2017.

The aforementioned operations include the portfolio of offices that Hispania has on the market, which has an estimated closing price of between €500 million and €600 million; three shopping centres that Sonae Sierra and CBRE Global Investors have up for sale worth around €500 million; a portfolio of four shopping centres owned by Unibail Rodamco; and several large office complexes in Madrid and Barcelona located in good areas of the market.

More caution

Luis Nuño, Director of Office Investment at BNP Paribas Real Estate, indicates that the market remains optimistic about the evolution of real estate investment in Spain, although with “more caution” than in previous years.

“Investors are going to have to propose more imaginative formulae and be more flexible if they want to access certain operations. Vendors’ expectations have been increasing gradually in recent years, making it more difficult to achieve the returns demanded by investors”, he said.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Redevco & Ares Purchase 70% of Parque Corredor Shopping Centre

2 February 2018 – Expansión

Yesterday, after more than a year and a half of negotiations, Redevco Iberian Ventures – the joint venture formed by Redevco and Ares – closed the purchase of 70% of Parque Corredor (located in Torrejón de Ardoz, Madrid) for €140 million. The new owners are preparing to give the asset a makeover, with an additional investment of €40 million, which will be used primarily to renovate the asset. Until now, Parque Corredor had a very fragmented ownership structure (…) and although the asset has an occupancy rate of 95% and receives more than 10 million visitors per year, investment is required for its repositioning.

With the completion of this operation, which has been advised by Deloitte, Cushman & Wakefield and Simmons & Simmons, Redevco Iberian Ventures has acquired the 40% stake held by Sareb – the largest shareholder until now -; the 14.5% stake held by Aermont (previously Perella Winberg); the 3.6% stake held by El Corte Inglés; and the 3% stake held by Bowling, as well as almost 10% held by smaller shareholders. On the other hand, Alcampo will retain its 24% stake in Parque Corredor, as will the Town Hall of Torrejón de Ardoz, which owns a municipal court there, and Toys R’ Us.

Parque Corredor is the third largest shopping centre in the Community of Madrid, behind Xanadú and Parquesur, and one of the largest in Spain, with a surface area of 123,000 m2 and 3,800 parking spaces. In the past, the centre was controlled by CatalunyaCaixa, which foreclosed a loan that had been granted to Testa. That stake was subsequently passed onto Sareb.

The new owners plan to reposition the shopping centre, which opened its doors in 1996. Redevco and Ares plan to spend €40 million on the complete renovation of the asset, which will be undertaken in stages and will not result in the temporary closure of the shopping centre. The remodelling plan, approved in July last year by the community of owners of the centre, is supported by the tenants.

Renovation

The proposed renovation will involve increasing the size of the stores so that some of its main tenants can open flagship stores there and making the leisure area more attractive to increase the number of visitors. The renovation work may take between 12 and 18 months. Parque Corredor is home to 180 establishments, an Alcampo supermarket measuring 24,000 m2 and nine cinema screens managed by Cinesa. Currently, the fashion and accessories section accounts for 24% of the shopping centre, with tenants such as Primark, H&M, El Corte Inglés, Sfera and Mango, amongst other brands. Next comes the Alcampo hypermarket (24%), the restaurant area (14%), leisure (10%), services (9%) and food, perfume and cosmetics (9%).

Competition

Inside Parque Corredor’s area of influence, the French firm Compañía de Phalsbourg plans to open the Open Sky shopping centre, measuring 85,000 m2. The construction work on that centre started in October last year.

Redevco Iberian Ventures, created in September 2015, acquired the Mercado de San Miguel in Madrid last summer for €70 million. In addition, last year, the joint venture company sold a portfolio of nine shopping centres to Vukile Property Fund, a company listed on the Johannesburg Stock Market (South Africa) through its Socimi Castellana Property for €193 million.

The company owned by Redevco and Ares has funds amounting to €500 million allocated for identifying and acquiring assets.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

French Guru To Build Giant Shopping Centre In Torrejón

25 April 2017 – El Confidencial

After four years of negotiations, the French multinational Compagnie de Phalsbourg has received the definitive green light to launch its first project in Spain. And it’s going to be a giant, with a gross leasable area of more than 100,000 m2, which promises to revolutionise the nature of shopping centres in the country.

The project will comprise an Open Sky complex and The Village outlet, two concepts that the French group has decided to combine in the same space for the first time in their history. Last week, the Town Hall of Torrejón de Ardoz granted the construction licence for the former, which had already received its urbanisation permit and, just three weeks ago, ING sold the French company the adjoining plot for the development of the outlet.

With these two milestones under its belt, Compagnie de Phalsbourg has put its foot down on the accelerator to begin construction of Open Sky next month and has already started marketing The Village. The aim of these two parallel lines of action is to inaugurate the complex in time for Christmas 2018 and to bring a new shopping centre concept to Spain, with the architecture taking on a starring role, including vast green spaces and water games.

The project presents a real challenge for this area in the northeast of Madrid, which just a few weeks ago saw the rejection of another major investment that had planned for this area, Cordish’s new Eurovegas, by the President of the Community, Cristina Cifuentes. The French group’s project, on the other hand, has already received the blessing of the local administration, which will allows it to enter and compete at the height of a period of transformation in the sector, following changes of ownership and the relaunch of Plenilunio, Cuadernillos and Alcalá Magna, as well as the upcoming sale of Parque Corredor.

The new Open Sky, designed by the architect Gianni Ranaulo, will be an outdoor shopping centre, with a gross leasable area (GLA) of 80,000 m2, containing 100 stores and 3,500 parking spaces, where numerous fashion houses will sell their wares along a walkway measuring more than 1.5 km The site will also have a navigable central lake, where light and water games will be held.

New giant

50% of the retail space has already been leased to firms such as Merkal, Adidas, Reebok, Soloptical, Kiwoko, Orchestra, Druni and Movistar, and an agreement with the Inditex giant is pending confirmation. (…).

Meanwhile, The Village, an outlet designed in the style of a villa by Philippe Starck, will cover a surface area of 22,000 m2 and will house 120 stores and restaurants, and 1,500 parking spaces. (…).

With these two developments, in which Compagnie de Phalsbourg plans to invest more than €100 million, the French group is beginning its expansion plan in Spain, where it plans to spend more than €500 million launching around half a dozen new projects over the next few years.

Founded in 1989 by Philippe Journo, the French group owns assets amounting to €1,240 million, as well as shopping centres (in operation) covering 600,000 m2, and shopping centres under construction covering 350,000 m2 in France. With rental income of €72 million per year, the company focuses its activity on the development, management and sale of both shopping centres and residential complexes (…).

Original story: El Confidencial

Translation: Carmel Drake

Sareb Finalises Sale Of Parque Corredor To Redevco & Ares

6 April 2017 – El Confidencial

One of the most entangled real estate operations in recent times is about to see the light. Namely, the sale of the Parque Corredor shopping centre, a giant in the retail sector, with a surface area of 123,000 m2 and 180 stores, located in the Madrilenian town of Torrejón de Ardoz, which Sareb has been trying to sell for four years.

It is the commercial jewel in the crown of the entity chaired by Jaime Echegoyen. The bad bank is the main shareholder, with 40% of the share capital, which it inherited from Catalunya Caixa. But, until now, that stake had been insufficient to convince any buyer, given that it does not guarantee control over the centre. Nevertheless, Sareb has teamed up with Perella to sell their shares to Redevco and Area Group en bloc, a move that will allow the new owners to acquire almost 60% of the share capital. All of the parties have declined to make comments.

The operation has been on the cards for months and although it has not been completed yet, according to the sources consulted by El Confidencial, conversations are in an advanced stage and are likely to come to fruition. El Corte Inglés may play an important role in the outcome given that together with Alcampo, it owns another 25% of the centre’s share capital, and their stake could also end up forming part of the transaction.

Sareb is being advised in the operation by Knight Frank, Perella is being advised by Cushman & Wakefield, whilst Redevco and Ares are working with Deloitte.

Depending on the total percentage that ends up being acquired, the final amount of the operation could reach €120 million, whereby valuing the entire centre at around €200 million, an amount that would allow Parque Corredor to join the growing number of shopping centres whose sales have exceeded €100 million, such as Xanadú (€530 million), Diagonal Mar (€495 million), Puerto Venecia (€451 million), Plenilunio (€375 million), Gran Vía Vigo (€145 million), Nassica (€140 million) and L’Aljub and Alcalá Magna (both €100 million).

Shopping centre alliance

Redevco and Area Management decided to join forces a year and a half ago, when they created a joint venture, Redevco Iberian Ventures, endowed with €500 million of capital and with the aim of acquiring shopping centres in Spain and Portugal. The new company was constituted with six assets, contributed by the two shareholders, and the objective of closing several acquisitions. The first was completed last spring, when it purchased six shopping centres in Extremadura and Andalucia, with a combined surface area of 84,250 m2, from Bogaris for €95 million. (…).

With Parque Corredor, the joint venture is acquiring a great asset near to the Spanish capital, but it needs significant renovation work, and the associated investment is estimated to amount to around €15 million, according to real estate sources. (…).

The shopping centre receives 10 million visitors per year and its tenants include Primark, H&M, Kiabi, Alcampo, Toys “R” Us and Cinesa cinemas. (…).

Original story: El Confidencial (by R. Ugalde)

Translation: Carmel Drake