CBRE Global Investors has acquired a 70% interest in H2O Rivas Shopping Centre in Madrid as part of a joint venture with the current owner, London-listed Alpha Real Trust (ART).
Financial details were not disclosed. Under the deal, ART will retain a 30% interest in the shopping centre and continue as operating partner.
CBRE GI carried out the investment on behalf of the European Co-Investment Fund (ECF), the firm's European value-add programme. It is the seventh investment for ECF and the fund is now fully committed. Retail Partners Europe and Jones Day advised CBRE GI on the deal.
ECF held a final close in February 2016, raising around $840 mln (€753 mln) from a group of North American and European investors. The closed-end fund invests in value-add real estate across Europe with a focus on building or repositioning assets in the retail and logistics sectors.
H2O shopping centre is located in Rivas Vaciamadrid, 17 km southeast of Madrid and one of the city’s fastest growing districts. Opened in 2007, the property is a 52,000 m2 shopping centre comprising 130 units across two floors with a strong leisure and restaurant focus. Anchor tenants include Nike, Mercadona, H&M, Mango and seven Inditex brands, along with cinema operator Yelmo. The property is currently 92% leased.
Under the new partners' ownership, H2O is set to undergo a renovation project which will further strengthen the leisure offer, enhance the tenant mix and consolidate the centre. The recent acquisition of an additional land parcel will also provide potential expansion capacity.
ART has also completed the refinancing of loans secured on the shopping centre with a new €65 mln seven-year loan with Aareal Bank. This loan has been used to partly repay the previous bank loan which had been provided by a syndicate of banks and which was due to be repaid in October 2017. The new margin of 1.8% (1.7% on swapped fixed rate borrowings) represents a saving on the previous financing which had incurred a weighted average margin of 2.5%.
Listed on the Specialist Fund Market of the London Stock Exchange, ART focuses on property, infrastructure and asset backed debt and equity investments in Western Europe.
