A group of investors represented by Avestus Capital Partners has sold a majority stake in Barcelona's second largest shopping centre.
A group of investors represented by Avestus Capital Partners has sold a majority stake in Barcelona's second largest shopping centre.
US investor Northwood Investors has closed the purchase of a controlling interest in Diagonal Mar for a price in excess of €250 mln, according to well-informed market-sources. Northwood has bought 60,000 m2 of the 87,500 m2 mall which was developed by Hines in 2001 and designed by shopping centre expert Jean-Louis Solal and architect Robert A.M. Stern.
The remaining 27,000 m2 of the mall is owned by Spanish anchor tenant Alcampo.
Based in New York, Northwood is a global real estate investment firm founded in 2006 by John Z. Kukral, former President and CEO of Blackstone Real Estate Advisors.
Avestus is understood to have acted on the deal on behalf of a number of investors including Ireland's bad bank NAMA. CBRE is the managing and leasing agent of the centre since 2004. Avestus has been the asset manager for the centre since 2006 and is being retained in this role by Northwood.
Quinlan Private, which rebranded as Avestus in 2010, bought the mall from Deka en 2006 for some €300 mln.
The centre is situated on a prime freehold site located three miles northeast of Barcelona’s city centre in the 22@ district. It is currently 98.7% leased to 190 tenants including Media Markt, Fnac, Primark, Zara, and H&M and includes 5,000 parking spaces.
Khaled Kudsi, senior managing director at Northwood, said: 'We believe that Northwood’s long-term perspective as owners, together with Avestus’ knowledge and experience with the property is the right combination to ensure that Diagonal Mar remains a premier retail destination in the Barcelona market.'
'This is the latest in a series of transactions with Northwood and we look forward to expanding our relationship with them and to implementing further our strategy for Diagonal Mar. The centre is an exceptional asset that has evolved considerably under our stewardship, maintaining a strong performance during the downturn,' added Fergus Farrell, principal at Avestus.
A local Spanish investor Hispania Activos Inmobiliarios also announced an investment on Tuesday in Barcelona's Diagonal Mar area with the purchase of 21 apartments from Santander Banif Inmobiliario Fund II for €64 mln.