Intu Properties plc (“Intu”) and Canada Pension Plan Investment Board (“CPPIB”) have together entered into a joint partnership agreement to acquire Parque Principado Shopping Centre, Oviedo, a 75,000m2 (approximately 800,000 sq ft) prime regional retail destination in Asturias, Northern Spain. The purchase price for the acquisition is €162 million before transaction costs. Intu will undertake the asset management of the property. It is the co-investors’ intention after acquisition to secure bank financing at around 50 per cent of the property value. The implied net initial yield at the purchase price is 7.2 per cent based on net income of €11.7 million.
Key features of Parque Principado, which opened in 2001, include:
one of Spain’s top-ranked retail destinations, the primary out-of-town centre for the region of Asturias
single-level covered retail gallery of 156 units
anchored by Primark, Zara, H&M, Cortefiel, C&A, Mango and Eroski hypermarket
- · the catering and leisure offer represents around 20 per cent of space, including a 12 screen cinema and bowling plus 20 restaurants
- · occupancy 97 per cent, average unexpired lease term of 6 years
- · 9 million footfall in 2012
- · well located, on an intersection of two motorways
- · catchment population of c900,000 within a 30 minute drive
- · significant asset management opportunities including adding to the range of catering and leisure and reconfiguring the below mall area and the hypermarket
Cushman & Wakefield acted on behalf of the co-investors in the purchase of Parque Principado and has been appointed property manager and letting agent.
Source : Company