AM sells Espacio León to CGI

AM NV (Amstelland MDC) and CGI (Commerz Grundbesitz-Investmentgesellschaft mbH) have signed a contract under which CGI acquires Espacio León in Spain. This shopping centre, which is due to open at the end of 2004, is the first development to be completed by AM in Spain. The transaction volume is €120 million.

Espacio León consists of 37,000 m² of retail and leisure floor space. The three commercial floors include 115 shops offering an attractive and complete mix of products, several restaurants, an advanced, nine-screen, multiplex cinema and 1,300 parking spaces. Forum Sport Retail, Supercore and Cinebox are the main anchor tenants.

León is a city of 143,000 inhabitants in the north-west of Spain. The shopping centre is situated in the north of the city, on the left bank of the River Bernesga, where a major urban development is being created. Espacio León, which is well-located in a new residential area close to the city centre, will serve a catchment area with a population of more than 200,000. Deals with major tenants are currently being closed, as construction progresses, based on a concept by T+T Design, AM’s in-house architects, and a design by L35 Arquitectos. This sculptural building is based on the urban concept designed by the city authorities with boulevards, public spaces and landscaped areas, and also offers a wide range of public areas and experiences all with the common theme of the ‘Cosmos’.

Growth in retail development
The Espacio León project is consistent with AM’s strategy of growth in shopping centre development in Europe. There is a strong demand in Southern Europe in particular for large-scale shopping centres incorporating leisure facilities, and these projects generate better margins than those in the more mature markets in Western Europe. AM’s income from shopping centre development is expected to increase to around 40% of its total income in 2003. By developing high-quality shopping centres, AM is meeting the needs of Spanish consumers, international store chains and property investors. Apart from León, AM Spain is currently developing shopping centres in Madrid, La Coruña, Vigo and Girona, the combined retail area of the various developments amounting to around 400,000 m² and the investment volume totalling some € 840 million. AM Spain is also developing an office park in Valsolana. AM has established this position with its powerful design & development approach, which follows through from concept to handover â€" thus conferring a substantial competitive advantage in securing assignments â€" and has proved to be a marketable export.
The sale of Espacio León has already been taken into account in AM’s profit projection.

Source: AM

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