Intu Properties and TH Real Estate – on behalf of its pan-European investment vehicle, the European Cities Fund – have agreed to form a joint venture to own Madrid Xanadú shopping centre in Spain.
Madrid Xanadú shopping centre is the retail and leisure destination for the south-west of Madrid and one of the top ten shopping centres in Spain. The centre, which opened in 2003, has an annual footfall of 13 million customer visits and an annual net rental income of €23m.
The centre provides around 220 retail, catering and leisure units. The two level retail mall includes key retailers such as El Corte Ingles, all of the Inditex fascias, Primark, H&M, Apple and Mango. In addition there is a strong leisure offering with SnowZone, Spain’s only indoor ski slope, a 15 screen Cinesa cinema and Ilusiona bowling. This will be enhanced by an aquarium and Nickelodeon indoor theme park which are under development.
Intu acquired Madrid Xanadú in March 2017 stating at the time that it would look to introduce an investment partner. TH Real Estate will acquire a 50 % interest in the joint venture, which includes the centre and the SnowZone business but excludes the management company, for a price of €264.4m (50 % of the price paid by Intu to entities of the Ivanhoé Cambridge Group) before net debt, working capital and other adjustments. Intu will use the net proceeds of the transaction to repay debt on its revolving credit facility. The joint venture arrangements provide that Intu will continue to be the manager of the centre. The closing of the transaction is subject to certain completion conditions including regulatory approvals.
David Fischel, Intu Chief executive, commented: “We are pleased to announce our new partnership with TH Real Estate and we look forward to working together on a number of compelling active management opportunities to enhance and strengthen Madrid Xanadú’s market position and offering.”
