Sierra Fund, managed by Sonae Sierra, and CBRE Retail Property Fund Iberica, owned by CBRE Global Investors, have sold Zubiarte shopping centre in Bilbao to the ActivumSG Iberia Fund I for an undisclosed sum. The Iberia Fund I, managed by European fund manager ActivumSG Capital Management, is working with Milligan Spain as strategic retail partner for this investment.
Opened in 2004, Zubiarte shopping centre was developed by Sonae Sierra and ING Real Estate Development. The centre has 20,647m2 of GLA, 65 stores and a total of 757 parking spaces. Zubiarte is central Bilbao's only shopping center, and benefits from a unique location amongst major landmark buildings including the Guggenheim Museum, the Iberdrola office tower and the Deusto University.
According to Fernando Oliveira, CEO of Sonae Sierra: "Selling Zubiarte is framed within our strategy of recycling capital held by the company and will enable us to execute our investment plan of placing €150m in several key projects in Spain, especially the Malaga Designer Outlet which will extend the Plaza Mayor center and requires €115m of construction".
Sonae Sierra and McArthurGlen signed an agreement in 2014 to develop the Malaga Designer Outlet in southern Spain. The development, will be the first designer outlet in southern Spain, offering 30,000m² of GLA once fully opened. The centre will be developed in two phases: the first phase will include 17,000m² of retail space and will open in 2017, and the second phase will add an additional 13,000 m²due 2019.
Jose Antonio Martin-Borregón, managing director of CBRE Global Investors in Spain and Portugal, explained: "The sale of Zubiarte is part of the asset rotation strategy of CBRE Global Investors. This year we have consolidated our leadership in the Iberian Peninsula with the acquisition of three retail assets located in key strategic areas, as well as important purchases of logistics centers and office buildings”.
On behalf of ActivumSG Iberia Fund I, Brian Betel commented: “Zubiarte shopping centre is a strategic acquisition for the fund because it is a high quality asset in a great location within a strong business and industrial city and a wealthy region in Spain. We see the opportunity to enhance the shopping and entertainment experience of the center for the residents of Bilbao over the coming years”.
