Cushman & Wakefield has assisted the Sierra Fund in the sale of three regional shopping centres in Portugal and Spain, to an investment vehicle which is the result of a strategic partnership between CBRE Global Investment Partners (“CBRE GIP”) and Sonae Sierra.
The transaction includes AlgarveShopping (44,791m²), Estação Viana Shopping (19,182m²) located in Portugal, and Luz del Tajo (41,090m²) in Spain. All three centres were built between 2001 and 2004 and offer a diverse tenant mix including fashion, food and leisure offers. The portfolio is currently 96.7% let.
Under the strategic partnership, CBRE GIP has a majority stake in the centres with Sonae Sierra retaining a minority share and acting as local operating partner and asset and property manager.
João Lélis, fund manager at Sonae Sierra, said: “This transaction recognises of the quality of our portfolio and management. It also gives us confidence that the market is active and appealing to investors looking for quality assets with a distinct market positioning and solid commercial strategy for the future.”
David Lopes, associate director, retail investment, Cushman & Wakefield Portugal, said: “The sale of AlgarveShopping and Estação Viana was the first structured transaction of shopping centres in Portugal in many years. This transaction is not only an important benchmark in the market but also evidence of the high interest of the international investment community in grade-A shopping centres in Portugal.”
Rupert Lea, head of retail capital markets in Cushman & Wakefield Spain, said: “This was a very significant transaction as it was the first shopping centre sale in the last 12 months in a secondary town to hit record levels. It shows clearly that the Spanish shopping centre market continues to be strong, driven by investor expectations of future sales and rental growth. In this deal, Cushman & Wakefield not only sold the shopping centre but also the hypermarket, converting the centre into 100% ownership which is unique in Spain – as most are co-owned.”
