Dutch privately held investment group Redevco has joined forces with US asset manager Ares Management to acquire and redevelop the El Corte Inglés department store in the heart of Barcelona in an operation believed to be worth a total of €200 mln.
The two partners plan to transform the building into a highly sustainable, mixed-use prime location offering 18,000 m2 of retail-led accommodation.
’Redevco and Ares have a highly successful track record of partnership in the Spanish market, and I fully expect this latest deal to match our ambitious targets for transforming the urban spaces of our cities,’ said Israel Casanova, managing director Global Transaction Management at Redevco. ‘The Barcelona acquisition has all the elements we look for in this type of retail-anchored investment: an ultra-prime location with high footfall in a city that is a magnet for tourists, combined with the opportunity to transform the existing format into a compelling, retail-led mixed-use destination. This perfectly fits Redevco’s strategic focus on creating vibrant places in dynamic urban areas, and thereby helping cities to become more liveable and sustainable.’
JLL advised the buyers while C&W acted for the vendor.
Redevco has been incredibly active in Spain in the recent past. Earlier this month it acquired six assets across Spain and Portugal for over €80 mln.
The investments in Lisbon, Bilbao, Seville, Porto, and Malaga, were to seed the launch of Redevco’s ‘Next Gen Stays’ joint venture platform. The goal of the strategy is to capitalise on the post-pandemic resurgence and growth in the youth tourism and experience travel market and aggregate a professionally managed portfolio in a fast-expanding sector.
The intention is to initially build a €250 mln portfolio in the Iberian markets with a like-minded JV partner, before expanding into a pan-European hotel vehicle with a target €500 to €700 mln investment volume.
