ING Real Estate revealed today at the MIPIM conference in Cannes that it has sold the Alcala Magna shopping center in Madrid to its own fund, the ING Retail Property Partnership Southern Europe Fund, for €130 million ($203 million).
ING had invested €100 million in the development of the shopping center, which opened in October 2007. The 34,000 square meter center was designed by the architectural firm Chapman Taylor, and was built in 16 months. It has a total of five levels, three of which have fashion, restaurant, food, leisure and service outlets and two of which contain a parking lot.
The center was fully let when it opened in October, with tenants including Zara, Woman’s Secret, H&M and Berksha. The center also has a Mercadona supermarket and children’s leisure operator VidBoys.
This is the second purchase for the southern Europe fund which has a target size of €1.2 billion. The first investment was the acquisition of Roma Est, a shopping center in Italy, for €400 million. That acquisition was made last year in a joint venture with CIC Real Estate.
The announcement comes on the same day that ING Real Estate has announced that its real estate equity management arm, ING Clarion Real Estate Securities plans to partially redeem auction-rate preferred securities for two of its closed-end funds.