Rodamco EspaÃ±a, part of Rodamco Europe, has acquired 3 additional shopping centres in Spain, located in Valladolid, San Sebastian and Albacete. With this acquisition, Rodamco Europe strengthens its position as the largest investor and manager in the retail sector in Spain. The company already owns 8 shopping centres, actively managed by local Rodamco teams.
The 3 centres are acquired from the joint venture company of LAR Grosvenor and Whitehall. The total investment amounts to EUR 125 million. At the same time, Rodamco Europe has signed an agreement to acquire the EROSKI hypermarket in Valladolid, for a further consideration of EUR 27 million.
The 3 shopping centres comprise a total commercial area of 82,800 mÂ², of which Rodamco Europe acquired 59,300 mÂ², the remaing part is owned by hypermarket operator EROSKI in San Sebastian and Albacete.
The combined portfolio will produce a net initial yield on total purchase commitment of 6.7%, which is expected to rise in year 3 to 7.6%, due to the reversionary potential and lease expiry patterns within the shopping centres.
With this acquisition Rodamco Europe reinforces its position as the largest investor in the retail sector in Spain, with over 713,500 mÂ². Furthermore, the quality and attractiveness to retailers of the schemes in Valladolid and San Sebastian add to the number of prime A1 centres within the Rodamco portfolio. Geographically, the centres add a presence in the North of Spain, balancing the geographic diversification. With a reversionary potential of over 17%, the portfolio offers much potential to increase returns in the short term through active management.
CEO Maarten Hulshoff comments: 'The acquisition fits well in our stratey. It emphasises our no 1. position as the investor and manager in retail real estate in Spain. The acquisition increases our investments in Spain from EUR 959 millo n to EUR 1,111 millon and SpainÂ's share in our portfolio from 16% to 18%. Here too, we are happy to see that the shopping centres accommodate international tenants known to Rodamco Europe .'
With this acquisition, and excluding pipeline developments, the sector spread of Rodamco EuropeÂ's portfolio in Spain has changed and now comprises of 75% in the retail sector, 14% offices and 11% logistics.
Simon Orchard, Managing Director of Rodamco EspaÃ±a comments: 'This is probably the most attractive retail portfolio that has been bought in Spain in the last 3 years. We are delighted to have been able to complete over such a short timeframe, our objective of further focusing our activity into our core sector, retail, and to increase the performance contribution of Rodamco EspaÃ±a towards Rodamco Europe.'
For further details please visit www.rodamco-eu.com.
(source: Rodamco Europe)