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

VIA Outlets will Start Renovating its Shopping Centre in Sevilla in Q4

11 October 2018 – Eje Prime

VIA Outlets has a start date for the remodelling and expansion of its shopping centre in Sevilla. The European group is going to start the building work on its Sevilla Fashion Outlet before the end of the year, according to explanations provided by the company to Eje Prime. The start of the complex’s reconstruction coincides with the opening of Torre Sevilla, owned by CaixaBank, and the relaunch in 2019 of Palmas Altas, owed by Lar España.

The company is going to invest more than €13 million in this comprehensive renovation project of the Sevillan outlet centre, the group’s second largest in Spain, after its complex in Mallorca. Amongst other aspects, “the building work will include the reconfiguration of the restaurant and food area”, says the company, which is also going to increase the number of parking spaces by approximately 40%.

In terms of aesthetic considerations, the renovation will involve a general remodelling of the centre, which will include a new façade, a renovated entrance and new common areas. “This, as a whole, will contribute to repositioning Sevilla Fashion Outlet as the only premium outlet in Andalucía”, says the group.

The retail complex has been owned by VIA Outlets since January 2017, when it purchased it from the fund Irus European Retail Property. With a surface area spanning 16,400 m2, Sevilla Fashion Outlet has already started the work to recondition and expand the complex’s parking area.

Founded in 2014 as a joint venture between  APG, Hammerson, Value Retail and Meyer Bergman, VIA Outlets has seen rapid growth in the real estate retail market. In just four years, the group has acquired eleven centres around Europe and, recently, it recruited two new senior managers. They were Otto Ambagtsheer (formerly of Unibail-Rodamco), who has been appointed as the Operations Director, and Peter Stals (formerly Blackrock),  who is the company’s new Finance Director (…).

The portfolio of VIA Outlets spans a gross leasable area (GLA) of more than 259,000 m2 and is home to more than 850 brands across the nine European countries in which it has a presence. In 2017, the group’s eleven centres recorded sales of more than €1 billion and were visited by more than 30 million people.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake

INBISA Starts Work on the New Torre Mariona Shopping Centre in Mallorca

26 July 2018 – Inmodiario

INBISA Construcción has started work on the construction of the new Torre Mariona shopping centre on plot 64 of the Son Malferit Industrial Estate in Palma de Mallorca, located between the Levante motorway and the main road to Manacor.

With a budget of more than €3 million, INBISA Construcción has teamed up with Grupo Ferran as the Project Manager, to construct the building, which is going to span more than 4,200 m2, and the urbanisation on the neighbouring plot measuring 3,400 m2. The property will comprise five premises, which will range between 140 m2 and 647 m2, dedicated to commercial, leisure and restaurant use. In total, the combined gross leasable area (GLA) will amount to 2,500 m2.

Moreover, the site will have an underground parking lot spanning 2,300 m2 with the capacity for 53 cars and 10 motorbikes.

It is worth highlighting that this is the fourth construction project in which the duo comprising INBISA Construcción and Grupo Ferrán are working for Hoteles de Palma, S.L., on this industrial estate, which is currently in the middle of development and which will provide services to the residential area of Nou Llevant. The previous projects involved the construction of three new commercial spaces, including the new Norauto facilities, as well as the renovation of a traditional windmill (…).

As Julio Aróstegui, Director of Retail at INBISA Construcción, highlights, “this new project in Mallorca follows others that we have undertaken on the island, where we have been working for more than three years now”. In this sense, he highlights the phased renovation of Mallorca Fashion Outlets for Via Outlets. “Moreover, it strengthens our position as a leading company in the renovation and construction of shopping centres and contributes to the expansion of the portfolio of projects in our Retail area, which includes renovations such as those involving the ABC Serrano Shopping Centre in Madrid, the Gran Casa Shopping Centre in Zaragoza, the Max Center Shopping Centre in Barakaldo and the construction of the new Finistrelles Shopping Centre in Esplugues” (…).

Original story: Inmodiario

Translation: Carmel Drake

VIA Outlets to Invest €13M+ in Expansion of Sevilla Fashion Outlet

6 June 2018 – Eje Prime

VIA Outlets wants to open a large showcase of luxury stores on the site of a former industrial estate in Sevilla. A year and a half after purchasing the Sevilla The Style Outlets shopping centre from the fund Irus European Retail Property, the company has announced that it is going to invest more than €13 million in the remodelling and expansion of the facilities, located near to Sevilla airport.

The construction work will begin in September, during a year in which VIA Outlets forecasts growth of 5% for Sevilla Fashion Outlets, its current name, and a “considerable” increase in international clientele, as indicated by the company.

VIA Outlets is a joint venture formed by Value Retail, the British firm Reit Hammerson, the Dutch pension fund APG and the European real estate investment manager Meyer Bergman. In its Andalucían asset, the company has luxury fashion clients such as Polo Ralph Lauren, Lacoste, Coach, Tous, Bimba y Lola, Scalpers and Hugo Boss, amongst others.

The aim of the manager is that, with the more than 15,000 m2 of recently acquired land, the outlet will become the largest smart shopping centre in the south of Spain.

More international clientele 

In addition to its growth forecasts, the joint venture is also aiming to attract more tourists to the facilities with the expansion. “The proximity of Sevilla Fashion Outlet to the airport and the good connections with the urban nucleus of a booming tourist destination such as Sevilla makes the centre a great attraction for international clientele”, said Ignacio Lobarón, Managing Director of the centre.

Currently, VIA Outlet’s portfolio comprises eleven centres located in nine European countries, including four on the Iberian peninsula (in Sevilla, Mallorca, Lisbon and Porto). Moreover, the group owns commercial spaces in Germany, The Netherlands, the Czech Republic, Sweden, Switzerland, Norway and Poland.

Original story: Eje Prime

Translation: Carmel Drake

VIA Outlets Buys 4 European Outlet Centres, Including 1 In Sevilla

25 November 2016 – Real Estate Press

VIA Outlets, the joint venture formed by APG, Hammerson Plc, Meyer Bergman and Value Retail, has signed an agreement to acquire four outlet centres, with a total value of €587 million and an initial yield of 5.5%, in a deal that is pending authorisation by the regulators.

The outlets are located close to major cities in Germany, Portugal, Spain and Poland. This purchase increases the value of VIA Outlets’ portfolio, which comprises ten assets, to €1,100 million, in which Hammerson owns a 47% stake.

Timon Drakesmith, CFO of Hammerson Plc and Chairman of VIA Outlets’ Advisory Committee, said: “This is a rare opportunity to acquire these four outlet centres in an off-market operation”.

“The European markets are very well positioned and are continuing to experience strong sales growth, supported by improved supply and an increase in the number of tourists across Europe”.

VIA Outlets has identified opportunities to boost sales growth and revenues from the operation, through a change in the commercial mix and the implementation of various marketing and tourism initiatives.

To support the portfolio increase, the organisational structure of VIA Outlets has been improved through external hires to expand the asset management, marketing and finance teams. The estimated IRR for the assets acquired is 11% over five years. (…).

In Spain, the JV has acquired the outlet located in the north east of Sevilla, which attracts a growing number of tourists visiting Andalucía. The outlet has a surface area of 16,400 m2, and is home to 65 brands, including Tommy Hilfiger, Mango, Polo Ralph Lauren and Adidas. Its annual sales amount to €3,600 per m2. (…).

Original story: Real Estate Press

Translation: Carmel Drake