Dutch-based pan-European property investment company VastNed Retail
expands its position in Madrid by acquiring a shopping center extension for a total of €56.6 million at a 5.9% net initial yield.
VastNed Retail has entered into a contract for acquiring a shopping center extension in the greater Madrid area. This extension will be completed shortly and will start to contribute to the direct investment result as from the fourth quarter of 2006. All the units of the 20,000 m² extension are pre-let to strong national and international retailers such as Zara, Massimo Dutti, C&A and Hennes & Mauritz. The investment totals €56.6 million at a 5.9% net initial yield and will be financed with loan capital.
Hans Pars, chief investment officer of VastNed Retail: Despite the fact that shopping centers have become increasingly expensive, this investment provides excellent value for money with healthy rental growth perspectives. Extensions of existing shopping centers appear to be attractive opportunities, since they provide for modern retail space in a proved-to-be-successful-area. Taking the size of the investment involved into account, we are well on our way with our 2006 acquisition program.