RREEF poised to buy Portuguese shopping centre portfolio

RREEF, the real estate investment manager of Deutsche Bank, is closing in on the acquisition of the owner-manager of 16 shopping centres in Portugal, according to Spanish media reports.

It is understood that debt-laden Spanish real estate developer Inmobiliaria Chamartin and its banks are in advanced talks to offload the Portuguese arm for some EUR 150 mln, including EUR 50 mln which will be re-invested in the centres. The vendors are being advised in the process by Rothschild.

RREEF declined to comment on Tuesday.

Inmobiliaria Chamartín bought the portfolio - previously known as Amorim - in 2006 for a total of EUR 500 mln, financing the acquisition with debt provided by a consortium of 10 Spanish banks including Banco Sabadell and Banco Popular. It also took over existing debt on the assets for a total of EUR 800 mln. The main lenders reportedly include ING, Eurohypo, Caixa Geral, and BCP.

Chamartín - which is majority owned by CEO Carlos Cutillas - put the assets on the market in late 2010 as it struggled to meet its debt obligations. Morgan Stanley holds a minority stake in the company, at 16%.

The portfolio also includes Chamartin's stake in the flagship Dolce Vita Tejo shopping centre in the outskirts of Lisbon. The mall, which is 60%-owned by Chamartin and 40%-owned by ING Development, represented an investment of some EUR 300 mln and is the largest shopping centre in the Iberian Peninsula.

Last week RREEF told PropertyEU during Expo Real that it is looking for opportunities in buying distressed property portfolios in Southern Europe. 'We believe 2012 will be a year of opportunity for funds with a higher risk profile,' Gianluca Muzzi, head of Europe ex-Germany and chief investment officer for Europe said. 'Southern Europe in particular is expected to offer value in the medium term due to the sovereign debt crisis,' he added.