Orion, which specializes in commercial real estate investment management on behalf of major investors from around the world, has acquired 50% of what will become Europe's largest retail and leisure destination.
This is the biggest investment made by the fund in Spain since its acquisition of the Plenilunio shopping center in Madrid. The vendor was advised on the sale process by the international property consultant, Cushman & Wakefield.
The venture between these two prominent real estate companies confirms the potential for this regional center, which has already been lauded as one of the most attractive new retail destinations in the country.
Aref H. Lahham, Managing Director of Orion: "We believe that retail in Spain still offers an attractive opportunity to our investors and the scale and quality of a center like Puerto Venecia which includes a development component is clearly one of those rare outstanding opportunities".
Nick Hodson, Head of European Development at British Land said: "We are delighted to welcome Orion European Real Estate Fund III as Joint Venture partners on the Puerto Venecia project. This partnership between British Land and Orion puts the project on the best possible footing as the shopping center development phase heads for completion in autumn next year."
The prime center of reference in the region
Puerto Venecia, situated in Zaragoza, will be the largest commercial and leisure complex in Spain once finished with a total lettable area of 206,000 m². The development has been structured in two distinct phases: Phase I is the 83,000-m² retail park incorporating IKEA. The retail park opened in 2008 and now welcomes more than 5 million visitors a year from a regional catchment area. Phase II, which comprises the shopping mall and leisure and activity areas (total area of 123,000 m²) is forecast to open in autumn 2012 with major market leaders such as El Corte Inglés, Primark, Cinesa and Decathlon.
The complex, which is 70% let or sold, enters its final phase with the support of two leading European real estate companies Orion and British Land.
Source: Cushman & Wakefield