CBRE Global Investors said on Tuesday that it has completed the sale of the Berceo shopping centre in Logroño, Northern Spain, as tipped by PropertyEU in October last year.
The shopping centre was sold by CBRE GI's Retail Property Fund Iberica (RPFI) to Barings Real Estate Advisers, part of asset management group Barings.
PropertyEU reported in October last year that landlord CBRE Global Investors was in advanced negotiations to sell the asset for an asking price above €105 ml.
Broker CBRE managed the sale of the mall, which provides around 34,000 m2 of gross lettable space as well as 2,600 parking spaces.
The property is located adjacent to a Carrefour hypermarket and is almost fully let to a mix of international tenants including a number of the Inditex brands (Zara, Pull & Bear, Zara Home, Stradivarius, and Bershka), Primark, H&M, Media Markt, and El Corte Inglés.
Bought by CBRE GI in 2004, the shopping centre and reported a record footfall in 2017 of 6.8 million visitors.
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'This transaction presents a rare opportunity to acquire a core shopping centre in a strong urban location with best in class retailers and limited competition in the surrounding area,' said Adolfo Favieres, country head of Spain at Barings Real Estate Advisers. 'Even though the asset is almost fully let, we have identified a number of short and medium term asset management initiatives to enhance the centre and drive the net operating income forward, such as increasing the amount of space for food and beverage operators, which will ensure this asset continues to attract high levels of footfall and high quality tenants.'
Berceo is Barings' fourth acquisition in Spain during 2017 following the acquisition of logistics assets in Zaragoza and Ontigola, as well as a retail development in Madrid.
'For 2018 we will continue to focus on the office, logistics and retail sectors but will also be widening our remit to include hotel and residential assets,' commented Gunther Deutsch, managing director and head of Investment Transactions Europe at Barings Real Estate Advisers. 'Furthermore, we will be looking to become more active on the development side either developing projects ourselves or through partnering with local developers in order to deliver value for our investors.'
Antonio Simontalero, portfolio manager RPFI, CBRE Global Investors, said: 'The investment market in Spain has consolidated further over the past years and attracts strong interest from international and national players, as we witnessed during the initial bidding round. Investors are attracted by the recovery and strength of the Spanish retail fundamentals. Our strategy is to focus the RPFI portfolio on its core assets and benefit from current market momentum.'
Cushman & Wakefield, Arcadis, Dentons and Deloitte acted as advisers to Barings on this transaction.
