4 July 2017
Reporter: Theo Andrew

JV sells nine Spanish retail parks to Vukile Property for €193 million

Vukile Property Fund has acquired nine retail parks in Spain from Redevco Iberian Ventures, a joint venture between Redevco and Ares Management, for €193 million.

The South-African listed retail property specialist purchased the parks, totalling 117,700 square metres, on behalf of its Spanish REIT Castellana Property Socimi.

The portfolio consists of a 13,600-square metre retail park in Madrid, a 25,900-square metre park in Granada, 20,000 square metres in Huelva, 13,500 square metres in Merida and a 16,250-square metre retail park in Asturias.

The remaining assets are four other retail parks located in Caceres, Villanueva de la Serena, Castellón and Motril.

The assets are 97 percent let to 72 tenants including Mercadona, Aldi, C&A and Burger King.

Vukile Property has secured €94.8 million of financing from Spanish lenders, with an all-in cost debt of 1.98 percent, and will finance the remaining €98.2 million from internal cash resources.

Redevco Iberian Ventures released the assets having “taken the properties to the next level, cementing their dominance in their catchment areas so that they continue to attract shoppers and retailers”, said Redevco CEO Andrew Vaughan.

Vaughan added: “We identified a number of initiatives to enhance the operating performance of these assets, and we have worked closely with our tenants to modernise and improve the quality of the parks. Our efforts encompassed leasing up space, refurbishments, re-gearing leases and starting to redevelop the park in Granada.”

Bill Benjamin, head of the Ares Real Estate Group, said: “Ares invested in these retail parks at the early stages of the Spanish recovery. This sale demonstrates the strength of our joint venture, which enabled us to quickly assemble and reposition a portfolio of critical mass for exit to an institutional buyer.”

He added: “Our joint venture continues to review potential acquisitions within the retail sector on the Iberian Peninsula that have significant repositioning opportunities.”

JLL and Dentons advised Redevco Iberian Ventures, while RPE, Grant Thornton, DokeiRE and Ashurst advised Vukile.

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