Pan-European real estate private equity firm ActivumSG has sold three shopping centres in Barcelona, Caceres and Bilbao for a total of €140 mln.
The portfolio was acquired from ActivumSG-advised Iberia Fund I by an undisclosed buyer.
The three shopping centres were acquired in separate transactions by ActivumSG before Covid-19. They comprise the SOM Multeispai, a 388,000 ft2 (36,000 m2) GLA shopping centre in Barcelona; the Centro Commercial Ruta de la Plata, a 191,000 ft2 GLA shopping centre in Caceres; and the Centro Commercial Zubiarte, a 240,000 ft2 GLA shopping centre in Bilbao.
At acquisition, the three assets were each characterised by under-management, high vacancy rates and declining net operating income, even prior to the onset of the pandemic-related restrictions in 2020.
The assets all benefited from a programme of proactive management, tenant engagement and strategic capital expenditure.
Despite a continued challenging retail environment, even in 2023, the portfolio saw a significant uptick in performance, boasting net rental growth of +11.7% and a footfall increase of +9.0% compared to the previous year. Notably, sales increased by +10.7% during this period.
Saul Goldstein, CEO and founder, ActivumSG, said: 'This is what we love doing at ActivumSG as part of our direct real estate strategy. Using our vertically integrated capabilities and full lifecycle expertise, we turnaround underutilised, high potential assets to create an end-product suitable for core buyers.
'Our local Spanish team deserves massive recognition, both in terms of its ability to identify the potential of these shopping centres and its ability to execute an extensive cap-ex program to unlock their potential from an asset management perspective.'
Brian Betel, head of direct asset transactions, ActivumSG, added: 'After the acquisitions, we embarked on an intensive yet thoughtful program of hands-on asset management, involving extensive tenant engagement and targeted capital expenditure.
'This resulted in the repositioning of each asset to optimize layouts, enhance footfall and create appealing shopping destinations by refining the retail offerings. This program included the provision of new customer access, additional family-oriented areas and the improvement of the internal flow of the assets with new escalators and elevators.
'We continue to evaluate the Spanish real estate market, seeking out undervalued opportunities particularly in the residential and hospitality sectors, where there is an under-supply of institutional-grade product as well as high-quality but mispriced retail assets.'
These sales closely follow other recent disposals by ActivumSG in Spain, including the Hampton by Hilton Fira Gran Via in Barcelona — a ground-up development strategically positioned near a major business conference area, completed in 2021 — and the Palacio Solecio hotel in Malaga.
The latter, formerly a derelict 18th-century Andalusian palace, underwent conversion by the firm into a boutique luxury hotel over two construction phases, culminating in its full opening in 2023 and sale last month.
