Redevco Iberian Ventures, the joint venture between real estate funds managed by global alternative asset manager Ares Management, L.P. and pan-European retail real estate investment management company Redevco, has acquired more than 70% of the gross leasable area in the Parque Corredor Shopping Center, one of the largest retail centres in Madrid. The majority stake was acquired through transactions with Sareb, a fund advised by Aermont Capital, and various other co-owners of the property for approximately €140m.
With more than 123,000 m² of retail and leisure area, Parque Corredor is the main shopping destination in Madrid’s east corridor, known as Corredor del Henares, attracting more than 10.5 million visitors annually. This acquisition follows Redevco Iberian Venture’s successful 2017 activity, which included the sale of a portfolio of nine retail parks across Spain for €193m in June as well as the acquisition of the Mercado San Miguel in Madrid for €70m in July.
Bill Benjamin, Partner of Ares Management and Head of the Ares Real Estate Group, said: “This investment adds another exciting asset to our joint venture with Redevco. The acquisition of more than 70% of Parque Corredor is representative of our strategy across Europe to acquire quality assets that are in need of investment and repositioning to unlock their value. Parque Corredor attracts more than 10 million visitors a year, making it one of the top 25 retail locations in Spain by footfall, and we believe that through active management and investment, we can further improve consumer traffic and tenant mix before returning this asset to institutional ownership.”
Andrew Vaughan, Redevco’s CEO, said: “With this transaction, the joint venture was able to consolidate a significant majority position in Parque Corredor, which will allow us to fully refurbish the asset. We expect to invest more than €40m to fully renew the shopping environment, adapting and extending existing shops to meet and exceed tenants’ and shoppers’ requirements, which is a core component of the JV’s value-add strategy. The refurbishment plans were already approved by the community of co-owners in July 2017 and have the full support of the centre’s longstanding fashion tenants, which are highly committed to the future of Parque Corredor.”
Parque Corredor currently offers a variety of food, fashion, services and leisure tenants that include a 24,000 m² Alcampo Hypermarket (Auchan Group), one of the largest hypermarkets in Spain, top fashion brands like Primark, Inditex Group, H&M, Mango, Kiabi and C&A, as well as a Cinesa movie theatre.
Advising on the transaction were Cushman & Wakefield, Deloitte and Simmons & Simmons.
