Intu Properties plc ('Intu') and Canada Pension Plan Investment Board ('CPPIB') have together entered into a joint partnership agreement to acquire Parque Principado Shopping Centre, Oviedo, a 75,000 m² prime regional retail destination in Asturias, Northern Spain.
The purchase price for the acquisition is €162 million before transaction costs. Intu will undertake the asset management of the property. It is the co-investors’ intention after acquisition to secure bank financing at around 50 per cent of the property value.
The implied net initial yield at the purchase price is 7.2% based on net income of €11.7 million.
David Fischel, Chief Executive of Intu, commented: “The opportunity to acquire Parque Principado, a top 10 center in Spain, on attractive and earnings accretive terms firmly establishes our presence on the ground in a country where we see considerable growth opportunities in the regional shopping center industry. A further positive feature of the acquisition is entering into partnership with a major and highly regarded global investor, CPPIB, and we look forward to extending this relationship.”
Graeme Eadie, Senior Vice-President and Head of Real Estate Investments, CPPIB, said: “This transaction is an opportunity to acquire a prime regional shopping center in Spain and is in line with our global retail strategy to invest in high quality assets which are leaders in their catchment area. We believe this is an attractive entry point to the Spanish retail market. Intu is one of the largest and most established shopping center operators in the U.K. and we look forward to partnering with them on this and future investments.”
Cushman & Wakefield acted on behalf of the co-investors in the purchase of Parque Principado and has been appointed property manager and letting agent.
Source: Intu Properties