Orion Capital Managers has put the Plenilunio shopping centre in Madrid on the market for €400 mln, reflecting a yield of 5%, to benefit from the recovery in the Spanish commercial property sector, PropertyEU has learned.
Orion Capital Managers has put the Plenilunio shopping centre in Madrid on the market for €400 mln, reflecting a yield of 5%, to benefit from the recovery in the Spanish commercial property sector, PropertyEU has learned.
According to well-informed market sources, the UK-based private equity firm has hired agent Cushman & Wakefield to market the scheme.
Orion bought Plenilunio in 2009 from Santander’s Banif fund for €235 mln - a 26% discount to the value of the asset at the end of the fourth quarter of 2009 (€320 mln). The 2009 deal reflected a yield of 7.5%, compared to a 5% for the current indication price.
Located in northeast of the Spanish capital, Plenilunio provides 70,000 m2 of space over 200 shops with tenants including Mango, Sfera, Okeysi and Primark. The scheme is likely to appeal to a wide range of foreign institutional investors which are looking for core assets in Spain. Earlier this month, the market saw the the sale of the Islazul shopping centre also in Madrid to European asset manager TH Real Estate for €232 mln.
Orion is a major investor in the country, having recently completed the purchase of a tourist resort for €225 mln. The asset, bought jointly with private equity firms Cerberus, features two hotels, two golf courses, land rezoned for development and the operation of sports and tourist services in the south-western Spanish port city of Cadiz.
The private equity firms took control of the Cadiz resort through the acquisition of almost 97% of local real estate company Sotogrande, a subsidiary of NH Hotels.
Orion is also the owner of the Puerto Venecia shopping mall and retail park in Zaragoza, one of the largest retail schemes in Europe with over 200,000 m2 of space. In October last year the London-based firm bought out British Land from the 50-50 joint venture which owned Puerto Venecia.