CBRE GI acquires Spanish mall for retail fund

CBRE Global Investors has completed the acquisition of the Ribera del Xúquer shopping centre in Carcaixent, south of Valencia in Spain, on behalf of a European retail strategy.

The centre opened in September 2005 and comprises around 34,120 m2 of gross lettable area over two storeys (including a 13,000 m2 Eroski hypermarket which is not part of the transaction) and consists of 76 retail units and 1,900 parking spaces.

Developed by a joint venture of Grupo Lar and Eroski, the mall was sold to UBS in 2009 following a redevelopment of the first floor which failed to meet performance expectations.

The asset is currently an established city centre scheme and has an occupancy rate of 95%.

Financial details were not disclosed.

'We have acquired a well-let dominant shopping centre with solid property fundamentals. It is the first shopping centre that we have bought in the Spanish market for this particular vehicle. We believe we are entering the market at a time where we can realise both income and capital growth for our investors,' said Florencio Beccar, fund manager at CBRE Global Investors.

He added: 'As we put our asset management initiatives in place, we will further improve the retail offer and tenant mix. We believe this shopping centre will be a very strong performer.'

CBRE Global Investors was advised by CMS Albiñana & Suárez de Lezo.

CBRE GI has €2 bn of assets under management in Spain and Portugal. The portfolio consists of 20 shopping centres comprising more than 1.3 million m2.