The Canada Pension Plan Investment Board (CPPIB) has bought half of the Puerto Venecia shopping centre in Zaragoza from Intu, in what is the second Spanish joint venture with the real estate investment trust (REIT).
UK-listed Intu bought Puerto Venecia in January for €451m, and said at the time that it would look for an investment partner this year.
CPPIB said it will pay €225m for the 50% stake.
Andrea Orlandi, managing director and head of real estate investments Europe at CPPIB, said: “This joint venture is an opportunity to increase our presence in the Spanish retail market, and is in line with our global strategy to build relationships with aligned, well-respected partners.”
It is the second joint venture formed by the two investors to own shopping centres in northern Spain, the first involving the Parque Principado shopping centre in Oviedo, in Asturias, which was bought in October 2013.
CPPIB said that between its purchase and the end of December last year, Parque Principado had increased in value by nearly 30%.
CPPIB described the Puerto Venecia shopping centre as the leading regional retail and leisure centre for the Aragon and surrounding regions in north east Spain, and one of the top 10 shopping centres in the country.
It was opened in 2012 and has more than 200 shops, restaurants and leisure businesses, including Primark, H&M and Apple.
David Fischel, Intu’s chief executive, said the REIT would use funds generated from the deal to push on with further Spanish activities.
He said it had recently exercised its option to buy a site in Malaga for a large shopping development.