CBRE GI fully invests Euro value add fund

The real estate investment management business of property services firm CBRE has made a Madrid mall its seventh and final purchase from its $840m European Co-Investment Fund. 

CBRE Global Investors (GI), the real estate investment management business of property services firm CBRE, has purchased the H20 Rivas Shopping Centre for an undisclosed price.

The firm said the acquisition would be the seventh and final investment made on behalf of its European Co-investment Fund (ECF), CBRE GI’s European-focused value-add platform.

CBRE GI bought the asset in partnership with Alpha Real Capital, the investment management arm of London-listed firm Alpha Real Trust and original owner of the asset.

CBRE GI will own 70 percent of the asset, while Alpha Real will retain the remaining 30 percent and will act as the operating partner.

The 520,000 square foot shopping center is located in Rivas Vaciamadrid, one of the fastest growing districts in the Spanish capital. The asset comprises 130 units across two floors and is 92 percent leased to tenants including Nike, H&M, Mango and Mercadona.

CBRE GI said it would renovate the mall to enhance the tenant mix and strengthen its food and beverage options, as well as potentially expanding the property into nearby development land.

“The acquisition is in line with our strategy of acquiring dominant assets in supply constrained markets which have refurbishment or redevelopment opportunities. We are happy to retain the existing manager, Alpha Real Capital, to deliver the business plan which should allow us to capture the forecast rental growth in the Madrid retail market and create a core, stabilized shopping center,” said Charles Baigler, fund manager of ECF.

CBRE GI held a final close for ECF in February 2016, raising approximately $840 million from a group of North American and European investors. The firm said the closed-end fund had invested in value add real estate across Europe, with a focus on building or repositioning assets in the retail and logistics sectors to create core product in supply-constrained markets.

Retail Partners Europe and Jones Day advised CBRE Global Investors on the transaction.