Newly formed Spanish REIT Merlin Properties has acquired the Marineda City shopping and leisure complex in the northwestern Spanish coastal town of La Coruna for €260 mln.
Newly formed Spanish REIT Merlin Properties has acquired the Marineda City shopping and leisure complex in the northwestern Spanish coastal town of La Coruna for €260 mln.
The deal reflects a net initial yield of 6.6% and is Merlin’s second since listing on the stock exchange in June in a €1.29 bn IPO, the largest-ever by a REIT in Europe. A week after going public, Merlin paid €740 mln for the acquisition of Tree Inversiones Inmobiliarias Inversiones that held 880 bank branches leased to Spanish bank BBVA.
The vendor of Marineda City is Galician holding company Invest Cos, owned by businessmen Manuel Jove, Modesto Rodríguez, José Collazo and Jose Souto.
CBRE advised Merlin on the transaction, which is the largest (by invested volume) shopping centre transaction in Spain since 2008.
Marineda City is Spain’s second-largest shopping and leisure complex, comprising some 200,000 m2 of GLA and 6,500 parking spaces. Opened in April 2011 following a total investment of €450 mln, the complex is a key destination in the northwest of the Iberian Peninsula, attracting more than 43 million visitors a year. The shopping centre includes a 45,000 m² El Corte Inglés department store, a 30,000 m² Ikea, 21,500 m² of restaurants and leisure units, a 13-screen cinema, bowling alley and ice skating rink. The adjoining 4-star Carrís Marineda City hotel has a surface area of 6,000 m2.
Commenting on the purchase, Merlin CEO Ismael Clemente said: ‘This asset strengthens Merlin's bet on building a portfolio of high-quality assets. Merlin's long-term focus and commitment will allow the company to harness the full potential of the property.’
'The sale of Marineda is significant for a number of reasons, among which the size of the deal and the type of investor are particularly relevant,' Adolfo Ramirez-Escudero, president of CBRE Spain, told PropertyEU. 'On the one hand, it represents the largest investment transaction in the new real estate cycle, demonstrating the continued strength of investor demand. Moreover, given the purchaser is Merlin, a Spanish SOCIMI, it also highlights the appetite of these REIT-type structures and confirms their role in the recovery and renewal of the real estate sector.'
Managed by Magic Real Estate, Merlin Properties specialises in acquiring and managing commercial property in the Iberian region, mainly offices, shopping centres, industrial and logistics facilities and urban hotels in the core and core-plus segments.