Purchased from a consortium of private Spanish investors the 1,764-square metre market is located in San Miguel Plaza, one of Madrid’s major attractions.
The iron and glass construction is home to 30 high-end grocery stores and 13 restaurant stalls. It is fully let with a long waiting list of prospective tenants.
The acquisition follows the joint venture’s recent sale of a portfolio of nine retail parks across Spain, as well as the disposal of Portimao Retail Park in Portugal to Olimpo Real Estate in May.
Redevco Iberian Ventures was created in September 2015 to target €500 million of value-add and opportunistic investments in retail properties on the Iberian Peninsula.
Andrew Vaughan, CEO of Redevco, said: “The purchase of Mercado San Miguel reflects our vision of where retail is heading, taking the consumer a step beyond a simple transaction to provide an experience that they enjoy and want to share.”
He added: “We expect to enhance the operations’ performance through active asset management and customer experience improvements.”
Bill Benjamin, head of the Ares Real Estate Group, said: “Mercado San Miguel boasts an attractive location in a major tourist area in central Madrid as well as a strong, defensive brand in a changing retail landscape.”
DLA Piper and KPMG advised the joint venture on the acquisition. Aguirre Newman and Freshfields advised the sellers.