Redevco and Ares Management's Iberian joint venture is selling a portfolio of Spanish retail parks to a South African retail specialist.
The buyer Castellana Property is acquiring the nine assets for €193 mln. Castellana is a Spanish Socimi or REIT backed by Vukile Property Fund, a South Africa-listed retail property specialist.
The portfolio, comprising 117,700 m2 of space, is 97% occupied. The tenants include grocery chains Mercadona, Aldi and Dia; fashion brands C&A, Kiabi and Merkal Calzados; as well as Burger King, Media Markt, Sprinter and AKI Bricolaje.
The transaction follows Redevco Iberian Venture's sale of the Portimao Retail Park in Portugal to Spanish REIT Olimpo Real Estate, in May 2017.
Global alternative asset manager Ares and Redevco, pan-European retail real estate specialist, created Redevco Iberian Ventures in September 2015, targeting €500 mln of value-add and opportunistic investments in retail properties on the Iberian Peninsula.
Commenting on the portfolio sale, Redevco's CEO Andrew Vaughan said: 'Our joint venture has taken these properties to the next level, cementing their dominance in their catchment areas so that they continue to attract shoppers and retailers. We identified a number of initiatives to enhance the operating performance of these assets, and we have worked closely with our tenants to modernize and improve the quality of the parks.'
JLL and Dentons advised the joint venture on the sale of the retail park portfolio, while Vukile was advised by RPE, Grant Thornton, DokeiRE and Ashurst.
Commenting on the deal, Salvador Pastor, head of M&A for Spain at JLL, said, 'This is the second time in just over a year that we have advised Ares/Redevco on a transaction in the Spanish market. The quality of the assets, coupled with the very healthy market currently, make this an exemplary deal. It is also a clear reflection of Spain’s ability to attract foreign investors, in this case from South Africa in their first transaction in the country.
'The deadlines for this process were extremely challenging. However, we have been able to meet the seller’s expectations in a deal in which various areas of JLL have worked together to reach a common goal.'
The parks included in the sale are:
- Mejostilla, Cáceres – 7,280 m2 in seven retail boxes
- Kinepolis, Pulianas, Granada – 25,900 m2 in 32 leisure and retail boxes
- Marismas del Polvorin, Huelva – 20,000 m2 in nine retail boxes
- La Heredad, Mérida – 13,500 m2 in nine retail boxes
- Retail Park Motril – 5,560 m2 in four retail boxes
- La Serena, Villanueva de la Serena – 12,400 m2 in nine retail boxes
- Ciudad de Transporte, Castellón – 3,250 m2 in two retail boxes
- Parque Oeste de Alcorcón, Madrid – 13,600 m2 in six retail boxes
- Parque Principado, Asturias – 16,250 m2 in five retail boxes
Pictured: Parque Principado
