Rockspring TransEuropean Property Limited Partnership VI (“TEP VI” or the “Fund”) and Stage Entertainment announce the acquisition, in a joint venture, of two iconic theatres, Teatro Coliseum and Teatro Lope de Vega, on Madrid’s Gran Via, Spain’s Broadway equivalent and a prime shopping destination. The transaction, which also includes retail and residential elements, has been secured in an off market transaction for €58m, reflecting a 7.5% yield.
The joint venture between Rockspring’s TEP VI and Stage Entertainment will see Rockspring Iberia manage the real estate while Stage Entertainment takes responsibility for the operation of the theatre entertainment businesses. Rockspring Iberia have primary responsibility for all transactions undertaken by Rockspring in the Iberian peninsula and also provide full asset management services for all Rockspring owned assets in the region. This combination of the strength of both companies complements their individual strategic plans: TEP VI’s focus on Europe’s leading cities, especially those exhibiting positive urbanisation trends; and Stage Entertainment’s commitment to the Spanish live entertainment market and its wish to further increase its presence in the cultural heart of the city.
The acquisition comprises the two theatres, Teatro Coliseum and Teatro Lope de Vega, which house 1,440 and 1,456 seats respectively, as well as two prime retail units totaling 1,419m² and three buildings adjacent to the theatres, which house a total of 43 short-term let apartments. New 10 year leases have been secured with Stage Entertainment on each of the theatres, providing long term income, while the wider opportunity includes the potential to realise value through a building reorganisation, refurbishment and, possibly, some redevelopment.
Paul Hampton, Rockspring Partner and Fund Director of the TransEuropean series said:
“This is a strong and exciting addition to the Fund’s portfolio, which already includes investments in the leading European cities of Paris, Geneva, and Lisbon. We are especially pleased to have the opportunity of partnering with a dynamic company like Stage Entertainment and we look forward to creating value from the real estate whilst its entertainment business continues to flourish.”
