AM NV (Amstelland MDC) and CGI (Commerz Grundbesitz-Investmentgesellschaft mbH) have signed a contract under which CGI acquires Espacio LeÃÂ³n in Spain. This shopping centre, which is due to open at the end of 2004, is the first development to be completed by AM in Spain. The transaction volume is Ã¢âÂ¬120 million.
Espacio LeÃÂ³n consists of 37,000 mÃÂ² of retail and leisure floor space. The three commercial floors include 115 shops offering an attractive and complete mix of products, several restaurants, an advanced, nine-screen, multiplex cinema and 1,300 parking spaces. Forum Sport Retail, Supercore and Cinebox are the main anchor tenants.
LeÃÂ³n is a city of 143,000 inhabitants in the north-west of Spain. The shopping centre is situated in the north of the city, on the left bank of the River Bernesga, where a major urban development is being created. Espacio LeÃÂ³n, which is well-located in a new residential area close to the city centre, will serve a catchment area with a population of more than 200,000. Deals with major tenants are currently being closed, as construction progresses, based on a concept by T+T Design, AMÃ¢â¬â¢s in-house architects, and a design by L35 Arquitectos. This sculptural building is based on the urban concept designed by the city authorities with boulevards, public spaces and landscaped areas, and also offers a wide range of public areas and experiences all with the common theme of the Ã¢â¬ËCosmosÃ¢â¬â¢.
Growth in retail development
The Espacio LeÃÂ³n project is consistent with AMÃ¢â¬â¢s strategy of growth in shopping centre development in Europe. There is a strong demand in Southern Europe in particular for large-scale shopping centres incorporating leisure facilities, and these projects generate better margins than those in the more mature markets in Western Europe. AMÃ¢â¬â¢s income from shopping centre development is expected to increase to around 40% of its total income in 2003. By developing high-quality shopping centres, AM is meeting the needs of Spanish consumers, international store chains and property investors. Apart from LeÃÂ³n, AM Spain is currently developing shopping centres in Madrid, La CoruÃÂ±a, Vigo and Girona, the combined retail area of the various developments amounting to around 400,000 mÃÂ² and the investment volume totalling some Ã¢âÂ¬ 840 million. AM Spain is also developing an office park in Valsolana. AM has established this position with its powerful design & development approach, which follows through from concept to handover Ã¢â¬" thus conferring a substantial competitive advantage in securing assignments Ã¢â¬" and has proved to be a marketable export.
The sale of Espacio LeÃÂ³n has already been taken into account in AMÃ¢â¬â¢s profit projection.