British Land and the closed-end fund PREF have formed a joint venture to acquire a prime regional shopping center and retail park in Murcia, Spain for circa €350 million from Deparcom (a joint venture between Eroski and Grupo Trusam). Completion of the transaction is anticipated before the summer following satisfactory due diligence.
Known as Nueva Condomina and located in the city of Murcia, south eastern Spain, the 120,000-m² scheme encompasses a 60,200-m² two-story enclosed shopping center and a 44,400-m² retail park. 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 opened in September last year and the retail park completes during March. Both the centre and the park are 96% let. Tenants include all the Inditex brands, Primark, FNAC, H&M, Leroy Merlin and Media Markt. Eroski will owner-occupy the hypermarket.
Valentine Beresford, British Land, said: "Prime out-of-town retail developments of this standard are becoming very rare in Spain and there is clear evidence that more international retailers are pushing into the country which will bode well for real rental growth. This scheme is well let and can be enhanced further by our asset management team. The investment delivers critical mass in the Spanish market when added to the Puerto Venecia, Zaragoza development and our other Iberian-based PREF assets.
"With the completion of this transaction, PREF has more than achieved its mid 2007 target of acquiring or contracting on a portfolio in excess of €1 billion which makes PREF the largest owner of out-of-town retail parks in western Europe with a contracted or acquired portfolio of over 464,000 m². We are very pleased with the quality and diversity provided by the locations of our 19 assets and we continue to actively seek further opportunities."
Cushman Wakefield advised British Land and PREF.
Source: British Land