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CBRE GIP buys Iberian shopping centers for €275m

The investment kick starts a joint venture between the strategic partnership division of parent company CBRE Global Investors (GI) and retail property manager Sonae Sierra. 

 

CBRE Global Investment Partners (GIP) has purchased a majority position in a trio of shopping centers in the Iberian Peninsula, in a transaction understood to be valued at approximately €275 million.

The deal was believed to be struck on behalf of four discretionary separate account clients.

The investment marks the start of a joint venture between CBRE GIP and retail investment manager Sonae Sierra, which is half-owned by London-based property company Grosvenor.

The three regional shopping centers, which are loacted in Spain and Portugal, were previously held in Sonae Sierra’s Sierra Fund. Under the arrangement, Sonae Sierra retains a minority stake and acts as local operating partner and property manager.

The three centers are the 482,126 square foot AlgarveShopping, the 206,473 square foot Estação Viana, both in Portugal, and the 442,289 square foot Luz Del Tajo in Spain. All three centers were built between 2001 and 2004 and offer a diverse tenant mix including strong fashion, food and leisure offers. The portfolio is currently 96.7 per cent let.

Jeremy Plummer, chief executive officer at GIP, said: “This transaction is in line with our global strategy to establish scalable, programmatic ventures with best-in-class, sector specialist, local operating partners in markets which offer strong growth potential. We are confident that Sonae Sierra’s experience and expertise will enable us to unlock further value from these centers and future acquisitions.”

Fernando Oliveira, chief executive officer at Sonae Sierra, said: “The creation of this venture confirms our commitment to Portugal and Spain, both a core focus of the development and growth strategy, since our company was founded. In this sense, Sonae Sierra will contribute with its know-how and experience in the retail real estate sector, to source assets with the greatest potential for growth and will be in charge of their management.”

In May, CBRE GIP acquired the BIG Shopping Center in Copenhagen for around €150 million.

Retail Partners Europe, Jones Day and PLMJ advised CBRE GIP. The advisor for Sonae Sierra was not disclosed.