Portuguese developer Sonae Sierra has confirmed it is preparing the launch of a third shopping centre fund focusing on the German and Italian markets.
Portuguese developer Sonae Sierra has confirmed it is preparing the launch of a third shopping centre fund focusing on the German and Italian markets.
'We are now finalising the structure and starting the marketing,' a Sonae Sierra spokesperson told PropertyEU. It remains unclear which shopping centres will be transferred to the vehicle.
Sonae Sierra owns a number of malls in Germany including Münster Arkaden, Alexa in Berlin in a joint venture with Union Investment, as well as the Loop5 mall in Weiterstadt, representing a partnership with Fonciére Euris. Work is underway for a new retail scheme in Solingen. In Italy, Sonae Sierra is due to open its flagship Le Terrazze mall in La Spezia next month, offering a total gross area of 38,500 m2 and involving an investment of over EUR 125 mln.
Sonae launched its first shopping centre fund in 2003, which has so far invested some EUR 1.8 bn in a total of 26 shopping centres. The developer retains a majority stake, of 50.1%, with institutional investors such as Dutch pension fund ABP, French financial group Caisse des Depots et Consignations, insurers CNP and Ecureuil Vie as well as US pension fund TIAA-CREF participating as co-investors.
The Sierra Portugal Fund followed in 2008, raising equity of EUR 300 mln. The fund, which was seeded with eight Portuguese malls, is 42%- owned by Sonae Sierra, with the rest held by Finnish pension funds LGPI and Ilmarinen as well as two funds managed by Schroder Investment Management.
