London-listed retail REIT Hammerson, Dutch pension giant APG, London-based private equity real estate firm Meyer Bergman and Oxford-based retail specialists Value Retail have acquired Festival Park, Mallorca’s premier outlet centre, from Minneapolis-based alternatives investment firm Värde Partners for more than €100 million.
The shopping center was purchased via the VIA Outlets joint venture, which was established in 2014 to buy up to 10 European retail centers with a total value of €1 billion. The VIA fund has previously purchased outlet villages in Amsterdam and Prague.
Värde acquired Festival Park as part of a portfolio in December 2011 and undertook a capital expenditure program to re-configure the centre, appointing outlet specialist Value Retail as operating partner in the project.
“The Spanish real estate market has improved significantly from when we acquired the asset in 2011, at the depth of the crisis,” said Tim Mooney, partner and co-head of global real estate at Värde. “This improvement is reflected in the operating performance of Festival Park as well as investor appetite for Spanish real estate assets.”
Värde Partners is a $10 billion global alternative investment firm that invests across a broad array of geographies, segments and asset types, including real estate, corporate credit, residential mortgages, specialty finance, transportation and infrastructure.
Last June, the firm closed its first real estate focused fund, a $500 million fund to invest in commercial real estate loans.
The fund will target real estate loans with principal unpaid balances below $50 million, according to a statement. The fund offering, called the Värde Scratch and Dent Fund would be looking at performing and sub-performing loans in the US.