British Land has completed the purchase of Nueva Condomina, Spain's prime regional shopping center and retail park in Murcia for €350 million in a joint venture with the closed-end fund PREF, reflecting a gross initial yield circa 5%. The 120,000-m² scheme comprises a 60,200-m² two-story enclosed shopping center and a 44,400-m² retail park.
Nueva Condomina in Murcia.
The shopping center opened September 2006 and the retail park in May 2007. The shopping center includes a 15-screen multiplex and a 13,700-m² Hypermarket. There is dedicated parking for 6,500 cars. The shopping center and the retail park are 100% let. Notable retailers include Primark, FNAC, H&M, Leroy Merlin and Media Markt as well as Zara, Massimo Dutti, Bershka, H&M, Benetton, Etam and Cortefeil.
The deal is reported to be Spain's biggest single out-of-town retail investment transaction and confirms British Land/PREF's position as the largest owner of out-of-town retail parks in Europe. The 120,000-m² scheme has been acquired from Deparcom, a joint venture between Eroski and Grupo Trusam.
Valentine Beresford, British Land, said, "Selectively extending our investments in Europe is an important strategic step and a logical extension of our UK market leadership. There is an under provision of out-of-town shopping in many Eurozone markets with attractive supply/demand dynamics, similar to the UK, although much less mature. The Nueva Condomina development is a very rare opportunity to acquire a prime asset in a market where there is clear evidence of a growing number of international retailers pushing into the country."
Cushman & Wakefield advised British Land and PREF.
Source: Cushman & Wakefield