Barings has provided a €40m senior construction loan to finance the development of a retail park in Dos Hermanas, located outside of Seville, Spain. The 36-month loan, which has been provided to a joint venture between Kronos Investment Group and a global investment management company, will fund the construction of a 64-unit, 48,646m² retail park, with 2,000 parking spaces, including electric car charging stations. The project is over 70% pre-let, ground and infrastructure works have been completed and full planning and building permissions have been obtained. The retail park is expected to open in summer of 2020.
Dos Hermanas has a population of 133,000 and is located 15km from the centre of Seville, Spain’s fourth-largest city. The development is being positioned as the new town centre, providing much needed new leisure and food and beverage offerings and an “events plaza”, to ensure it is relevant to current consumer trends.
Ben Silver, Head of Global Real Estate Debt, Barings, said: “This is our latest loan to close in Western Europe as we continue to build our global debt platform. We are excited to be part of real estate transactions like Dos Hermanas and look forward to seeing opportunities from similar sponsors.”
Sam Mellor, Head of Real Estate Debt Portfolio Management and Origination – Europe, Barings, added: “Dos Hermanas is a growing dormitory town close to Seville and this loan will enable the construction of the dominant retail scheme for the immediate and undersupplied catchment area. The strength of the project is evidenced by the high demand for space, which is already substantially pre-let.”