Sareb Sells Parque Corredor Shopping Centre to Redevco & Ares

2 January 2018 – El Confidencial

In the end, there will be a sale. Sareb has managed to reach an agreement with Redevco and Ares to sell them the Parque Corredor shopping centre, in an operation that is expected to be closed within the next few days, according to sources familiar with the transaction. This deal will fire the starting gun for the complete transformation of the Madrilenian shopping centre.

As El Confidencial revealed, the entity chaired by Jaime Echegoyen had joined forces with Perella to complete one of the operations that has been on Sareb’s desk for the longest, but which has never ended up being signed (until now) for various reasons, including the dispersed shareholding of Parque Corredor and the divergent interests of those shareholders.

The sum of Sareb and Perella’s forces guaranteed that Redevco and Ares would take a majority stake in the shopping centre, given that the former holds 40% of the share capital and the latter holds 20%. But, more support was always needed to enable it to undertake a complete transformation and whereby compete with the neighbouring Open Sky, a shopping centre that is currently being constructed just four kilometres away.

In the end, both El Corte Inglés, the owner of just under 4% of Parque Corredor, which has an outlet store there, and Alcampo, owner of just over 20%, have decided to join the sale initiated by Sareb, according to the same sources (…).

The offer from Redevco and Ares values the whole centre at around €200 million, an amount that will be added to the planned investment of €20 million required to renovate the centre. The renovation project that has been entrusted to the Chapman Taylor studio.

Parque Corredor is a shopping centre giant with a retail surface area of 123,000 m2 and 180 stores, located in the Madrilenian town of Torrejón de Ardoz. Its tenants include the Spanish firm Mango, the Swedish retailer H&M, the Irish firm Primark and the French retailer Kiabi, all direct rivals of Zara.

This shopping centre went through its toughest time four years ago when Inditex decided to vacate because of the poor upkeep of the complex. Nevertheless, in recent times, confidence in the centre has been returning, with some of the retail group’s brands opening stores there, such as Bershka, Pimkie and Stradivarius. To date, there is no sign of the flagship brand Zara returning just yet.

Sareb has been advised in the operation by Knight Frank, Perella has received the services of Cushman & Wakefield, whilst Redevco and Ares have been working with Deloitte.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

Deutsche Bank Negotiates Sale Of Gran Vía Alicante

30 April 2017 – Expansión

The real estate market for shopping centres is unrelenting. In the latest deal, Deutsche Bank has hung the “for sale” sign up over Gran Vía Alicante. The German entity’s real estate division, RREEF, which has engaged the real estate consultancy firm JLL to sell this shopping centre, has already received several offers for the asset.

Whilst the operation has not been closed yet, one of the players lining itself up as a candidate to take over the shopping centre is the British fund Europa Capital.

Moreover, one of the other investors interested in the asset is a consortium formed by Eurofund Capital Partners and Patron Capital and Carmila, the real estate subsidiary owned by Carrefour, according to market sources, which value the asset at just over €50 million.

The centre has a retail surface area of 37,300 m2, however, that figure includes a hypermarket owned by Carrefour, measuring 17,050 m2, which falls outside of the perimeter of this transaction.

Specifically, the retail space for sale, which has a gross leasable area of more than 20,200 m2, contains around 80 stores distributed over three floors, as well as an underground car park with 1,600 spaces.

Tenants

The shopping centre, inaugurated in November 1998 and renovated in 2012, received almost 5.3 million visitors last year and has an occupancy rate of 95% of its gross leasable area.

The shopping centre’s main tenants include brands such as Primark, H&M, Lefties, Massimo Dutti, Pull & Bear, Juguettos, Calzedonia, Natura and Fosters Hollywood, amongst others.

Gran Vía de Alicante, located on Calle José García Sellés, competes with Plaza Mar 2, the largest shopping centre in the town, spanning 43,600 m2.

In addition, other nearby shopping centres include Parque Vistahermosa, measuring 34,000 m2, San Vicente Outlet Park, measuring 36,500 m2 and Puerta de Alicante, measuring 34,500 m2.

Investment

Shopping centres are one of the real estate assets that have sparked the most interest amongst investors in recent years.

In 2016 alone, more than €3,700 million was invested in this segment, which constituted the second largest market in the real estate sector after the office segment.

The main operations closed last year included the sale of Diagonal Mar (Barcelona), which was acquired by Deutsche Bank from Northwood in August for €495 million, and the sale of Gran Vía de Vigo, which the Socimi Lar España acquired from Oaktree for €145 million.

So far in 2017, another mega-operation has been closed with the British fund Intu’s acquiring the Xanadú shopping centre (Arroyomolinos, Madrid) for €530 million from Ivanhoé Cambridge.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

Revenues At Neinver’s Spanish Outlets Rose By 11% In 2016

22 February 2017 – Expansión

The Spanish outlet centres managed by Neinver generated revenues of €287 million last year, up by 11% compared to 2015. Similarly, the crowds at these centres increased by 10% to reach 18.5 million visitors.

This data does not include activity at Viladecans The Style Outlet – the sixth centre that Neinver manages in Spain – as it only opened its doors in Barcelona in October. The centre, which received investment amounting to more than €80 million, ended the year with more than 800,000 visitors.

The Director of Neinver in Spain, Eduardo Ceballos, explained that, over the last five years, both the number of visitors and sales (at its outlets) have experienced continuous growth. “Moreover, 2016 was marked by the opening of Viladecans The Style Outlet, the first centre in Barcelona’s metropolitan area, which has achieved record visitor numbers during its first two months of activity, and by the agreement to manage the Fashion Outlet Barakaldo in the north of Spain, which strengthens our position as the leading player in the sector”.

Across Europe, total sales at the outlets managed by the company amounted to €1,183 million, up by 10% compared to 2015 and the number of visitors rose by 8% to 50 million.

Neinver – which has operations in France, Germany, Italy, Poland, Portugal, Spain, The Netherlands and the Czech Republic – manages 21 centres in total, with a combined retail surface area of 537,700 m2 and almost 1,700 stores.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake