A joint venture between Neinver and TIAA has completed the purchase of Nassica, an outdoor retail park and leisure park in Madrid.
TH Real Estate act as investment adviser for the joint venture.
Located in Getafe, just south of the Spanish capital, the 55,000 sq m (592,015 sq ft) asset has 46 retail and lifestyle tenants including a multiplex cinema and multiple bars and restaurants.
Acquired from a joint venture between KKR, a global investment firm and Neinver, Nassica attracts over six million visitors per annum and has experienced significant footfall growth over the past two years under Neinver’s management. Neinver, who originally developed the property will continue to have a stake in the asset and remains the property manager.
The joint venture partnership was formed in 2014 to acquire prime outlet malls across Europe. It already owns The Style Outlets in Roppenheim, France, and Viladecans, recently opened in Barcelona, Spain as well as Factory Outlet brands in Warsaw and Krakow, Poland. The venture also owns Futura Park in Krakow.
Although Nassica is not an outlet mall, it lies immediately adjacent to Getafe The Style Outlets, a EUR100 million outlet mall that the joint venture has acquired. With this acquisition, the joint venture will own and control approximately 80,000 sq m (861,113 sq ft) of retail, dining and leisure space – one of the largest concentrations of its type under sole ownership in Madrid – thus laying the foundation for enhanced growth potential for the future.
Nassica is located close to the junction of the A4 (Madrid – Cordoba Motorway) and the M50 outer ring road. The site has strong visibility and accessibility from the highways, making it highly accessible to the wider catchment in the south of Madrid. The park is anchored by strong retail brands including Carrefour, Media Markt, Conforama, Toys R Us and C&A. It has a direct connection with the adjoining outlet mall and there is a high frequency of cross shopping.
The acquisition enhances TH Real Estate’s Iberian management portfolio. Outside of the JV agreement with Neinver, TH Real Estate manages a circa EUR1 billion portfolio of nine shopping centres across the region, on behalf of other third-party clients.
TH Real Estate says: “The acquisition expands our successful European joint venture with Neinver and TIAA. Spain has undergone considerable economic reforms that have put it in a good position to continue outperforming the Eurozone in terms of growth over the medium term. Madrid and Barcelona are leading the national recovery, and this has been reflected in soaring liquidity levels in the retail investment market. Combined with a tight planning regime for retail space and highly-favourable catchment income demographics, we believe this scheme will deliver attractive returns over the long term. The acquisition was of great strategic importance, given our ongoing negotiations to acquire the adjacent Getafe: The Style Outlets, which has now successfully concluded. It provides us with an incredibly rare opportunity to provide customers with a compelling retail, dining and leisure experience in one of the best cities in Europe.”
Neinver adds: “As a reference shopping and leisure centre of the southern area of Madrid, Nassica is a strategic asset for our joint venture with TIAA and we believe the centre will benefit very positively under this alliance. The renovation and makeover to modernise the centre’s facilities carried out in 2015, under our management, have been a turning point in the performance of the asset, which currently enjoys a 97 per cent occupation. We are delighted to continue contributing with our know-how and specialised management to maximise Nassica’s excellent results."
Source: PropertyFundsWorld