Intu, the UK shopping centre REIT, is selling a 50% stake in the Xanadú shopping centre in Madrid for €264.4 mln to TH Real Estate, creating a joint venture for the ownership of the mall.
The deal includes the centre and the SnowZone business but excludes the management company. It represents 50% of the price paid by Intu to entities of the Ivanhoé Cambridge Group in March of this year for the entire asset.
'We are pleased to announce our new partnership with TH Real Estate and we look forward to working together on a number of compelling active management opportunities to enhance and strengthen Madrid Xanadú’s market position and offering,' commented Intu CEO David Fischel.
The centre, which opened in 2003, has an annual footfall of 13 million customer visits and an annual net rental income of €23 mln.
With around 220 retail, catering and leisure units, key tenants include El Corte Ingles, all of the Inditex fascias, Primark, H&M, Apple and Mango. Leisure elements comprise SnowZone, Spain’s only indoor ski slope, a 15 screen Cinesa cinema and Ilusiona bowling. An aquarium and Nickelodeon indoor theme park are under development.
TH Real Estate is making the investment on behalf of its pan-European investment vehicle, the European Cities Fund.
'Xanadú is a super prime shopping centre with a first-rate tenant line up and extensive asset management potential. Future plans to further enhance the leisure element of the scheme cement its position as an asset that is well-positioned to deliver a robust income return,' said Andrew Rich, European Cities Fund lead fund manager, TH Real Estate.
Xanadú represents the fourth standing acquisition for the European Cities Fund, following investment into Meraville Retail Park, Bologna, the Omni Centre, Edinburgh, and the Kamppi Centre, Helsinki.
Intu said it would use the net proceeds of the transaction to repay debt on its revolving credit facility, and would continue to manage the centre.
The deal is subject to regulatory approvals.
