Redevco Iberian Ventures, the joint venture between pan-European retail real estate investment management company Redevco and funds managed by global alternative asset manager Ares Management, has acquired a covered food market in Madrid for €70 mln from a consortium of private Spanish investors.
Mercado San Miguel, at San Miguel Plaza in the historic centre of Madrid, is a heritage-protected building covering 1,764 m2. Divided into 30 high-end grocery and delicatessen stalls as well as 13 quick-service restaurant stalls, the property has no vacancies and a long waiting list of prospective tenants.
'The purchase of Mercado San Miguel reflects our vision of where retail is heading—taking the consumer a step beyond a simple transaction to provide an experience that they enjoy and want to share,' commented Andrew Vaughan, Redevco’s CEO. 'This architectural gem of a building in close proximity to Madrid’s top attractions is an anchor point in the city, where visitors go to shop for groceries and enjoy a unique food and beverage offering. We expect to enhance the operations’ performance through active asset management and customer experience improvements.'
Ares and Redevco announced the creation of Redevco Iberian Ventures in September 2015, targeting €500 mln of value-add and opportunistic investments in retail properties on the Iberian Peninsula. This deal follows the recent sale of a portfolio of nine retail parks across Spain to Vukile Property last month as well as the sale of the Portimao Retail Park in Portugal to Olimpo Real Estate in May 2017.
Advising Redevco Iberian Ventures on the acquisition of Mercado San Miguel was DLA Piper and KPMG.
The seller was advised by Aguirre Newman and Freshfields.
