A fund managed by ActivumSG Capital Management has added to its Spanish shopping centre portfolio by purchasing three properties from Klépierre for €61 mln.
ActivumSG Iberia Fund I has completed the acquisition of two centres in the suburbs of Northwest Madrid and a third in Cáceres in Southwest Spain.
'Spain’s prolonged economic crisis has left many shopping centres, like these, in need of fresh investment and hands-on management. We see this as a great investment opportunity as the economic recovery takes root, giving shoppers more confidence to spend,' commented Saul Goldstein, founder and managing partner of ActivumSG. 'This off-market transaction typifies the approach that we have taken with other assets in Spain and in Germany, where our local teams transform properties into stable income-producing assets that will appeal to potential buyers, generating attractive returns for our investors.'
The acquired properties are non-core assets that Klépierre obtained in its takeover of Corio last year. In Madrid, Sexta Avenida is a two-story 16,800 m2 mall with a vacancy rate of 24%. The 21,600 m2 Espacio Torrelodones retail gallery has 83 retail units attached to an Alcampo hypermarket, which is not included in the transaction. The 8,300 m2 Ruta de la Plata retail gallery in Cáceres has 64 retail units occupied by tenants including Pull & Bear, Stradivarius and Bershka.
The transaction follows the fund's acquisition since June 2015 of the Heron City retail and leisure complex in Barcelona and Bilbao’s Zubiarte shopping centre.
The latest deal means that more than 65% of the €200 mln of equity raised by the fund at last year’s final close is now fully committed. ActivumSG said that the fund was on course to be fully deployed during the third quarter of 2016. It is also invested in high street retail in Madrid, hotels under construction in the city centers of Madrid and Malaga and residential developments in Madrid and Alicante.
Cushman & Wakefield, Linklaters, Hill International and Malcolm Hollis advised the fund.
