Ares Management and Redevco’s Iberian joint venture has acquired a majority stake in Parque Corredor shopping centre in the capital of Spain for €140m.

Redevco Iberian Ventures said it has bought more than 70% of the gross leasable area in the Parque Corredor shopping centre in Madrid.

The majority stake was acquired through transactions with Sareb, a fund advised by Aermont Capital, and various other co-owners of the property.

With more than 123,000sqm of retail and leisure area, Parque Corredor is the main shopping destination in Madrid’s east corridor, known as Corredor del Henares.

This acquisition follows Redevco Iberian Venture’s 2017 activity, which included the sale of a portfolio of nine retail parks across Spain for €193m in June as well as the acquisition of the Mercado San Miguel in Madrid for €70 m in July.

Bill Benjamin, a partner of Ares Management and head of the Ares Real Estate Group, said: “This investment adds another exciting asset to our joint venture with Redevco. 

“The acquisition of more than 70% of Parque Corredor is representative of our strategy across Europe to acquire quality assets that are in need of investment and repositioning to unlock their value.”

Andrew Vaughan, Redevco’s CEO, said: “With this transaction, the joint venture was able to  consolidate a significant majority position in Parque Corredor, which will allow us to fully refurbish the asset. 

“We expect to invest more than €40m to fully renew the shopping environment, adapting and extending existing shops to meet and exceed tenants’ and shoppers’ requirements, which is a core component of the JV’s value-add strategy. “

Redevco Iberian Ventures was created by Ares and Redevco in September 2015 to target €500m of value-add and opportunistic investments in retail properties on the Iberian Peninsula.