US private equity firm Harbert Management Corp is on the verge of acquiring three shopping centres in Portugal, according to reports.
The assets comprise a portfolio which Sonae Sierra - the Lisbon-based shopping centre specialist - manages on behalf of its Sierra Portugal Fund. Europroperty reported that the yield on the transaction is expected to be around 8%.
The Portuguese assets up for sale are 8ª Avenida, a 20,000 m2 centre located in São João da Madeira, LoureShopping, a 42,000 m2 in Loure, and the 44,000 m2 RioSul centre in Seixal, south of Lisbon. The pick of the bunch is RioSul, said PropertyEU’s sister title.
Opportunistic investor Harbert makes a habit of targeting secondary shopping centres in Spain and of capitalising upon reduced demand for the assets.
Covered shopping centres are trading at lower prices as the physical retail sector struggles to come to terms with the challenge of online shopping and changing consumer habits.
The deal is expected to close by the end of the year.
