A fund managed by ActivumSG Capital Management has added to its portfolio of Spanish shopping centres by purchasing three properties from Klépierre for EUR61 million.
Activum SG Iberia Fund I has completed the acquisition of two centres in the affluent suburbs of Northwest Madrid and a third in Cáceres, the historic city in Southwest Spain.
The transaction follows the fund’s acquisition since June 2015 of the Heron City retail and leisure complex in Barcelona and Bilbao’s Zubiarte shopping centre.
Saul Goldstein, founder and managing partner of ActivumSG, says: “Spain’s prolonged economic crisis has left many shopping centres, like these, in need of fresh investment and hands-on management. We see this as a great investment opportunity as the economic recovery takes root, giving shoppers more confidence to spend. This off-market transaction typifies the approach that we have taken with other assets in Spain and in Germany, where our local teams transform properties into stable income-producing assets that will appeal to potential buyers, generating attractive returns for our investors.”
The acquired properties, all non-core assets that Klépierre obtained in its takeover of Corio last year, are the Sexta Avenida shopping centre, a two-story 16,800 sq m property with a vacancy rate of 24 per cent; the 21,600 sq m Espacio Torrelodones retail gallery with 83 retail units attached to an Alcampo hypermarket, which is not included in the transaction; and the 8,300 sq m Ruta de la Plata retail gallery in Cáceres with 64 retail units that are that are occupied by tenants including the fashion brands Pull & Bear, Stradivarius and Bershka.
The transaction means that more than 65 per cent of the EUR200 million of equity raised by the fund at last year’s final close is now fully committed. The fund is on course to be fully deployed during the third quarter of 2016.
Other investments include iconic high street retail in Madrid, hotels under construction in the city centres of Madrid and Malaga and residential developments in Madrid and Alicante.
Source: PropertyFundsWorld