Klépierre Close To Finalising Its Purchase Of Plenilunio

20 February 2015 – Modaes

The French company Klépierre, which specialises in the management of retail properties, is putting the finishing touches to its purchase of the Plenilunio shopping centre. The retail complex located in Madrid is one of the largest in Spain with a gross leasable area (GLA) of 70,000 square metres.

In the final stretch of the sales process, Klépierre has overtaken the fund manager Tiaa Henderson and the German fund Invesco, which have also been bidding for the property in recent weeks.

Currently, Plenilunio is owned by the fund Orion. Klepierre would be willing to pay between €380 million and €390 million for the shopping centre, which comes close to the asking price set by the current owners (€400 million). Negotiations beween Orion and Klépierre are now in full swing and a deal could be reached within the next few days. The sale of Plenilunio would break the record for the purchase of a shopping centre in Spain.

The Madrilenian centre occupies a surface area of 220,000 square metres, of which 70,000 square metres are leasable. Some of the most important fashion brands have stores in the centre, including H&M, Inditex and Primark; the latter operates its largest store in Spain in this centre.

Klépierre has an asset portfolio valued at €14,000 million and has a presence in thirteen European countries, including Italy, the Netherlands, France, Germany, Spain, Portugal and Turkey.

Original story: Modaes

Translation: Carmel Drake

Klépierre, Invesco And TH Offer €350m For Plenilunio

19 January 2015 – Expansión

The home straight/ Orion receives three binding offers for the Plenilunio Retail Park. Unibail Rodamco withdraws from the process.

The sales process for one of the largest shopping centres in Madrid is in its final stages with three finalists. The French company Klépierre and the funds Tiaa Henderson (TH) and Invesco have all submitted binding offers for the property.

Invesco is the latest candidate to join the bid for the centre; the French-Dutch group Unibail Rodamco has withdrawn from the process. The shopping centre operator had expressed interest in acquiring Plenilunio to create a Golden Triangle in Madrid, as the owner of three landmark properties: La Vaguada, ParqueSur and through this transaction, Plenilunio. However, the high price offered by its competitors has put pay to Unibail Rodamco’s aspirations, explain industry sources. The British real estate company Grosvenor has also expressed interest in the centre, according to real estate sources.

Thus, TH – which bid alongside a sovereign fund -, Invesco and Klépierre would all be willing to pay €350 million for this property, which occupies a surface area of 220,000 square metres. Plenilunio has 70,000 square metres of retail space (GLA), distributed over three floors, plus 2,500 parking spaces, according to the Spanish Association of Shopping Centres. The property, which has an occupancy rate of almost 98%, generates annual rental income of €20 million.

Upon receipt of the binding offers, the current owner, the US fund Orion, must choose whether to negotiate with a single finalist or to conduct a final competition with two of the finalists. It is expected to take this decision quickly as it aims to close the sale during the first quarter of 2015, as revealed by Expansión on 17 December.

Plenilunio, which opened in May 2006, was developed by the Spanish real estate firm Riofisa (acquired soon after by Colonial). Before its opening, Banco Santander bought the property for €275 million, and then sold it onto Orion for €235 million in 2009.

The US fund controls the property through its company Orion Columba which adopted a Socimi structure in September 2013. The sale of Plenilunio is the second large divestment that Orion has undertaken in Spain in recent months – it closed the sale of the Puerto Venecia shopping centre in Zaragoza at the end of 2014. The property, the largest in Spain, was acquired by the British real estate company, Intu Properties for €451 million. In October 2013, Orion paid €144.5 million for the 50% of the centre that it did not already own.

Plenilunio is one of 80 shopping centres expected to change hands over the next few months in Spain, according to Deloitte Real Estate. In 2014, more than €2,100 million was invested in shopping centres across the country, driven by the sale of Marineda in La Coruña for €260 million and Islazul in Madrid for €232 million.

Original story: Expansión (Rocío Ruiz)

Translation: Carmel Drake

Hines Puts Zielo Shopping Centre Up For Sale

19 January 2015 – Expansión

The real estate company Hines has decided to sell one of its landmark shopping centres in Spain, namely the Zielo Shopping centre, located in the Madrid suburb of Pozuelo.

Zielo Shopping opened in October 2009. It occupies a total surface area of 50,000 square metres, of which 15,537 m2 are used for commercial purposes; and it has more than one thousand car parking spaces. In February 2011, Hines requested a €50 million loan from Eurohypo to finance the construction of the centre. Before its inauguration, the real estate company said that its investment in the facilities would exceed €100 million.

Now, Hines has put the property on the market for a price of around €65 million. To this end, the Houston-based real estate company has decided to organise a restricted sales process, in which it has invited three of the largest Socimis to participate, namely: Merlin, Axia Real Estate and Lar España, as well as the funds Tiaa Henderson and Deka Inmobilien. If no agreement can be reached with these five candidates, Hines will open up the process to new investors, according to real estate sources.

Original story: Expansión

Translation: Carmel Drake

TIAA Henderson Acquires the Islazul Retail Park For €230 Mn

27/10/2014 – Expansion

TH Real estate, management company created as a fusion of Tiaa Creff and Henderson Global Investors, has been negotiating on the purchase with fund Ivanhoe Cambridge since late summer.

Finally, its offer outbid other proposals submitted by bidders like Hines or the fund of HSBC.

The Islazul shopping center has 265.000 square meters of built area and 90.000 square meters of GLA (gross lettable area). This is the second largest retail park in Madrid and one of the most popular as it generates 12-15 million euros annually.

Together with the purchase, TH Real Estate manages a €900 million worth of assets on the Iberian Peninsula. Among its commercial properties in Spain, notable are the Nervion Plaza in Sevilla and the Espacio in La Coruña. Besides, the firm owns two shopping parks in Fuengirola and Vigo, a hotel in Malaga and a logistics hub in Alovera (Guadalajara).

Quebec & Lar

Opened in 2008, the property has been included in the portfolio developed jointly by Ivanhoe Cambridge (belonging to bank Caisse de Dépôt et Placement du Québec) and Spanish real estate firm Lar. To set the ball rolling, the partners put €350 million in total.

Earlier this year, first attempt to sell the shopping center ended up in fiasco as the maximum price obtained was €185 million, submitted by Orion, an amount that was rejected by Ivanhoe expecting at least €200 million for the unit.

The operation is a sampling of the huge interest of investors in real estate assets for rent and, above all, in shopping malls.

Thus, out of the total of €5.67 billion invested in the property market during the first nine months of 2014, more than €2.7 billion was spent on Commercial Real Estate (CRE), as per data of advisor CBRE.

Big foreign investment funds and Socimis (Spanish counterparts of REIT vehicles) lead in the year-to-date acquisition volume. In fact, one of the listed trusts, Merlin Properties, has conducted the 2014 largest transaction on the Marineda shopping park in La Coruña, paying €260 million for the property. Furthermore, Socimi Lar España has spent €148 million on three shopping centers.

 

Original article: Expansión (by R. Ruiz)

Translation: AURA REE

“We Are Going to Invest in the First-Class Shopping Parks”

3/07/2014 – Expansion

Less than one year old, investment management company TIAA Henderson Global Real Estate already possesses a €49 billion worth portfolio with assets scattered around Asia, Europe and the United States. Its developers are TIAA Cref and Henderson Global Investors, present in Spain since 2007 and managing almost €15 billion in property.

The latter runs five shopping malls in the country: the Nervión Plaza in Seville, the Miramar in Málaga, the L’Aljub in Elche, Getafe Bulevar in Madrid and the recently acquired Espacio Coruña. Moreover, the arm owns two medium-size parks: the Parque Mijas in Malaga and the Parque Meixueiro in Vigo, as well as a logistics platform in Madrid. As the company´s general director for Europe, Mike Sales, says “they are quality assets which maintained fair occupancy during the crisis, now faring much better.”

“We would like to invest in the entire Old Continent and Spain seems attractive to us. We are focused on the commercial real estate and we want to find partners among local, core and core-plus shopping center owners and investors”.

 

Original article: Expansión (by R. R.)

Translation: AURA REE