Marathon Finalises Purchase Of 8 Shopping Centres In Spain & Italy

6 June 2017 – Expansión

The US fund Marathon Asset Management is negotiating the purchase of a new European portfolio to incorporate into its list of real estate investments. The company, one of the star shareholders of the Spanish property developer Vía Célere, together with Värde, is finalising the purchase of a portfolio, known as Bronze, comprising eight shopping centres located in several towns in Spain (2) and Italy (6).

These centres were acquired by the Pradera European Retail Fund between the end of 2006 and the middle of 2009 and their current market value amounts to €326 million. Six of the retail establishments are located in Italy. The largest, Domus Shopping Centre, has a gross leasable area (GLA) of 26,795 m2 and is located in Rome. Moreover, another is located in Formia, measuring 23,422 m2, called Itaca, and the Prato Sardo Shopping Centre, measuring 15,724 m2, is located in Nuoro, on the island of Sardinia. Three of these shopping centres are fully occupied, whilst the occupancy level of the property in Rome is 77%.

Spain

In the case of the Spanish component, Pradera is selling the La Marina shopping centre, located in Benidorm; and the Llobregat centre, located in Barcelona. La Marina covers a retail surface area of 35,599 m2 and its occupancy level stands at around 94%. Meanwhile, the Llobregat centre is smaller, with a GLA of 14,160 m2, and its occupancy rate amounts to around 66%.

The value of the Spanish establishments amounts to around €95 million. La Marina was one of the first properties to be purchased by Pradera’s retail fund, which spent €525 million on nine operations in Spain and Portugal in December 2006.

In fact, initially, Pradero included a Spanish third shopping centre in the sales process: the Travesía de Vigo centre. Acquired in 2007 for €40 million, this property, with a GLA of almost 10,000 m2, is currently worth €26 million. Although Pradera initially planned to sell, in the end, it has decided to exclude it from the batch for sale, explained sources close to the process.

Marathon already owns one shopping centre in Spain, given that at the beginning of last year, it acquired Bahía Azul in Málaga for €18.5 million.

Record investment

The operation by the US fund reflects the interest from real estate investors in shopping centres, after investment figures reached record levels in the last two years.

In 2016, investment in shopping centres amounted to €3,500 million, up by 59% compared to a year earlier. During the first three months of 2017, investment in commercial assets reached €1,365 million, which represented a significant proportion of the total investment in non-residential real estate (€2,326 million). Of that figure, several operations stand out, such as Intu Properties’ purchase of the Xanadú shopping centre, in Arroyomolinos (Madrid), for €530 million.

Recent purchases by international investors include the operation closed by the British management company Schroders, which spent €52.5 million on the acquisition of the Metromar shopping centre, in Sevilla.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

MDSR Investments Buys Travesía De Vigo Shopping Centre For €49M

3 November 2016 – Real Estate Press

The establishment, located in the city centre, has a surface area of more than 65,000 m2, of which 24,736 m2 is dedicated to retail space, according to data from the Spanish Shopping Centre Association.

Inaugurated in October 2003, the shopping centre is leased out almost in its entirety to tenants such as Carrefour, several brands from the Inditex group, including Pull & Bear and Stradivarius, as well as Corfefiel, Springfield and WomenSecret. In addition, it has an underground car park with more than 1,500 parking spaces.

This is the fifth investment that the Israeli fund has made in Spain in less than a year. In this way, in recent months, MDSR Investments has acquired the following retail parks: La Dehesa in Alcalá de Henares, Connecta in Córdoba and Puerta del Ave in Ciudad Real, as well as the Mercado de Campanar shopping, leisure and restaurant complex in Valencia.

“Our objective is to acquire more commercial assets and become a key player in the market for retail spaces in Spain within a short period of time”, said Annalaura Benedetti, Head of MDSR Investments in Spain.

Until now, the shopping centre was controlled by Meteore Alcala y Pradera, a British fund that owns 43 shopping centres and business parks across several European countries, which are worth around €2,000 million.

The real estate consultancy firm Catella has advised the vendors in the operation whilst the Pérez-Llorca has provided legal advise to the buyer. “This acquisition consolidates the appetite from institutional investors for shopping centres with a significant area of influence and first-rate tenants”, said Carlos López, Partner at Catella.

Original story: Real Estate Press

Translation: Carmel Drake