Rodamco Europe has acquired the 15,600 mÂ² Sevilla Factory in Dos Hermanas, Seville for EUR 24.34 million, producing a net initial yield of 7.5%. The acquisition strengthens Rodamco EuropeÂ's position as the largest investor and manager in the retail sector in Spain, and further rebalances its property portfolio towards the retail sector.
A Factory Outlet Centre (FOC) is a special shopping centre format. Retailers and other producers of proprietary brands sell branded articles directly to the public at considerable discounts. The articles offered for sale include surplus stocks, so-called Â'end of linesÂ', and returned goods, which ensure a continuously changing range of articles. Consumers are prepared to travel large distances to visit an FOC, which makes its catchment area many times larger than that of a regular shopping centre.
After nearly two years of negotiations, during which time the initial project doubled in size through an extension, Rodamco in Spain has made its first entry into the Factory Outlet Centre market in Spain. It is Rodamco EuropeÂ's second investment in an FOC, following the acquisition of Batavia Stad Outlet Centre in Lelystad, the Netherlands in June 2001.
The property comprises a total retail area of 15,600 mÂ², and has 1,200 surface parking spaces. It opened in two phases: phase one opened in October 1999, and phase two in September 2000. The centreÂ's location can be described as urban, situated as it is in the Dos Hermanas suburb of Seville, with a catchment area of 100,000 people within 10 minutes by car and over 900,000 within 30 minutes.
Furthermore, it is adjacent to an existing Carrefour Hypermarket, and an existing leisure centre. The whole complex adds to both the local and regional attraction of the scheme.
The FOC has 62 shops with major retailers including Nike, Zara, Cortefiel, El Corte InglÃ©s and Burger King.
Rodamco EuropeÂ's total portfolio in Spain is worth almost EUR 1,023 million. Its 12 Spanish shopping centres comprise a total commercial area of 739,500 mÂ², of which 329.000 mÂ² is owned by Rodamco, and which attract over 113 million visitors each year.
Simon Orchard, managing director of Rodamco EspaÃ±a, comments: 'This acquisition perfectly compliments our existing portfolio of 11 shopping centres, where many of the operators and retailing specialities are the same. It is also an excellent step in the further rebalancing of our portfolio towards the retail sector. After this acquisition and the recent acquisition of three shopping centres in Valladolid, San Sebastian and Albacete, and after the sale of the Egeo offices at the end of May 2002, the retail sector now represents 80% of our Spanish portfolio.'
(source: Rodamco Europe)