Intu Properties is buying Puerto Venecia shopping centre and retail park in Zaragoza for €451m. The price equates to an initial yield of 5% (based on rental income of €22.4m). €225m of the cost will be funded by a term loan supplied by HSBC (interest rate of 3.5%) and the balance will come from Intu’s own resources.
Intu already owns developments sites in Malaga, Valencia, Palma and Vigo in conjunction with Eurofund. Intu says it’s thinking about getting in a partner to help fund Puerto Venecia and the Malaga site. This deal, the sites and Intu’s Parque Pricipado centre in Oviedo form part of a plan to expand Intu’s presence in Spain.
Puerto Venecia is the regional retail and leisure destination for the Aragon and surrounding regions and one of the top ten shopping centres in Spain. Situated eight kilometres to the south of Zaragoza, with direct frontage onto the city’s ring road, it has an expected footfall this year of some 18 million customer visits, an increase of over 15 per cent year on year, from a catchment of over one million people.
The asset comprises a retail park and shopping centre which has a strong fashion mall and adjoining leisure and restaurant area. The retail park was opened in 2008. The fashion mall and leisure and restaurant area are situated over two floors and surround a central lake. The shopping centre was opened in 2012.
The centre and retail park provides a trading area of 200,000 square metres. This transaction involves acquiring approximately 120,000 square metres, with the remaining area owner occupied, including sites sold to Ikea, Leroy Merlin, Porcelanosa, El Corte Ingles and Hipercor. The scheme is home to over 200 shops, restaurants and leisure operators, including the Inditex brands, Primark, H&M and Apple. The asset has over 10,000 car park spaces.
Occupancy, by rent, amounts to over 95 per cent in the shopping centre and around 90 per cent in the retail park.
Intu Properties buys Spanish retail park