TH Real Estate and Intu Properties are acquiring a 50% stake in a Spanish shopping centre.

The joint venture is taking the half stake in the Xanadú Shopping Centre in Madrid, paying €264.4m.

TH Real Estate said it is investing for its European Cities Fund, its fourth deal for the open-ended core fund since its launch last year.

Marta Cladera de Codina, head of Iberia at TH Real Estate, said: “Madrid is one of the future-proof cities identified by our research team, thanks to its strong GDP growth and a GDP per capita that is higher than the national average.”

The centre, Cladera said, is 20km from Madrid’s city centre, with over four million consumers within a 30 minute drive of the centre.

“Xanadú benefits from these demographic fundamentals and we believe in its long-term ability to deliver returns for our investors,” she said.

The 119,227 sqm property is let to tenants including Decathlon, Primark, H&M and the Inditex Group, as well as Apple, Hollister and Forever 21.