US investor Madison International Realty has entered the Portuguese market with the acquisition of a 25% interest in the Sierra Portugal Fund, the owner of nine shopping centres in the country.
US investor Madison International Realty has entered the Portuguese market with the acquisition of a 25% interest in the Sierra Portugal Fund, the owner of nine shopping centres in the country.
The stake was acquired from Portuguese retail specialist Sonae Sierra, the majority owner of the vehicle. Following the deal, Sonae Sierra retains a 22.5% stake in the fund and will continue to manage both the vehicle and the individual assets within it.
The financial details of the transaction were not disclosed.
Derek Jacobson, managing director at Madison International Realty added: 'The acquisition of a 25% stake in the Sierra Portugal Fund is illustrative not only of our confidence in the Portuguese retail market but also our ability to diversify on behalf of our investors, acquiring partial ownership in prime markets in the US, UK and both Southern and Western Europe.'
SPF was created in 2008 and currently owns interests in nine operating shopping centres in Portugal, believed to have a value of around €600 mln.
The 315,000 m2 portfolio, which boasts an occupancy rate of over 96%, comprises 8ª Avenida, AlbufeiraShopping, ArrábidaShopping, GaiaShopping, LeiriaShopping, LoureShopping, Centro Comercial Continente de Portimão, RioSul Shopping and SerraShopping.
Finnish pension funds Keva and Ilmarinen, UK asset manager Schroders Investment Management and the Swiss Partners Group own the remaining interest in the fund.
