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Ares, Redevco JV buys €95m Spanish retail portfolio

The deal marks the first purchase through the LA-based asset manager’s €500 million joint venture with Dutch real estate specialist Redevco Iberian Ventures. 

Ares Management and Redevco Iberian Ventures have purchased a €95 million portfolio of six retail parks in southern and western Spain.

The portfolio comprises approximately 906,000 square feet of retail space. All six parks are almost fully let, featuring tenants such as Mercadona, Aldi and Dia, Burger King, C&A and Sprinter.

The most notable parks are the 275,000 square foot Kinepolis, in Pulianas, Granada, the 215,000 square foot Marismas del Polvorin, in Huelva, and the 145,000 square foot La Heredad, in Merida.

Redevco, based in Amsterdam, will act as the local manager of the funds.

In September last year, Ares and Redevco announced they had formed a €500 million joint venture, stating that, for it, they would be investing in shopping centers, retail parks and high street properties in Spain and Portugal. Following this transaction, the partnership, which said it was focusing on value-add and core-plus investments, has now committed more than €200 million.

Israel Casanova, Redevco’s managing director of Portugal & Spain, said: “This is a great start to the joint venture, illustrating the types of opportunities that we have been targeting to create a specific retail park-focused portfolio. It gives us immediate scale in the Spanish retail park market, and we will be on the lookout for fresh investment opportunities in Spain and neighboring Portugal.”

Rafael Aviles, head of real estate Iberia at Ares Management, said: “These six retail parks are all dominant in their locations and enjoy a long-performing attractive tenant base. There is significant value-add potential to improve the portfolio’s operating performance in the coming years, including property enhancements that will ensure they continue to attract shoppers and retailers.”

The seller was Bogaris, a Spanish property developer. Advising Redevco on the purchase of the portfolio were JLL and Deloitte.

In February, Ares acquired two French retail outlets centers, in the regional cities of Troyes and Roubaix, for around €200 million.  

Last October, Redevco also launched a €250 million joint venture with Hermes Investment Management, the investment management business of the BT Pension Scheme, to invest in core-plus and value-add European retail.

Ares Management has approximately $94 billion of assets under management as of December 31, 2015, of which $10.3 million is in real estate.