Northwood Investors has bought a major Spanish retail property, providing further evidence of growing confidence in the country’s macro-economic outlook.
The US investment firm, which invests on behalf of both private and institutional investors, bought Diagonal Mar in Barcelona for an undisclosed amount.
Previous press reports in late 2013 estimated that Northwood would pay around €150m. The mall has previously been owned by a Derek Quinlan consortium, which paid around €300m for the centre in 2007.
The purchase of the centre from Avestus Partners is, Northwood said, part of a long-term strategy. The firm typically holds properties for at least seven years.
Khaled Kudsi, senior managing director at Northwood Investors, said: “Diagonal Mar will benefit from Barcelona’s continued economic resurgence.”
Northwood has bought 64,000 sqm of the 87,000 sqm mall, with the remainder owned by Auchan’s Spanish entity, Alcampo.
Avestus will continue to asset manage the centre on behalf of the New York-based investor, which has typically invested in European commercial real estate in major cities. In 2011, the firm made its debut deal in Europe, buying a 75% stake in a Paris office asset from Beacon Capital Partners.
Northwood, which has $3.9bn of assets under management, is mainly backed by commitments from US institutional money.