Oaktree Capital Management has bought Spanish real estate from a unit tasked with winding down a legacy portfolios still owned by ING.
ING Real Estate & Other, which is disposing of assets originally held by ING’s real estate development and investment management businesses, sold the Gran Via de Vigo centre in the northwest of Spain to funds managed by Oaktree.
The shopping centre in the city of Vigo was built by ING Real Estate Development seven years ago.
Global portfolio manager, Erik Vester, said the the sale was an “important accomplishment” as part of its “phased withdrawal from real estate equity positions globally”.
Vester said the “performance of the centre has been resilient throughout the economic turmoil in southern Europe”, which had been ”pivotal in sourcing institutional equity looking for prime retail exposure in the region”.
ING Real Estate & Other combines what ING terms the “residual activities” of ING Real Estate Development, ING REIM and ING’s general lease activities. The businesses are no longer in operation.
The portfolio includes land, residential developments and retail properties in eight countries, including Australia, Italy, Switzerland, the UK and the Netherlands.
ING’s Spanish portfolio is mainly industrial and retail.
Pedro Dos Reis Ferreira, transaction manager for Spain of ING Real Estate & Other, said the latest transaction “brings us one step closer to fully divesting our still sizeable portfolio in Spain”.