AEW Europe has acquired a high-end retail asset in central Madrid on behalf of the City Retail Fund, in a forward purchase agreement.
AEW Europe has acquired a high-end retail asset in central Madrid on behalf of the City Retail Fund, in a forward purchase agreement.
The transaction marks the first Spanish acquisition undertaken by the fund, which launched with a €125 mln first close in November 2015.
The asset, which has been acquired as a forward purchase from a joint venture between Rockspring Property Investment Managers and a local investor, is a 750 m2 flagship retail unit on Calle Serrano and is scheduled for delivery in the third quarter of 2017.
Calle Serrano, a luxury shopping destination, is located in the heart of Madrid and is home to a number of high-end international retailers and boutiques such as Prada, Cartier, Louis Vuitton and the Adolfo Dominguez.
AEW Europe’s City Retail Fund has a total target fund raise of up to €400 mln in equity commitments which, with a maximum loan-to-value ratio of 50%, will provide it with a total investment capacity of up to €800 mln. The fund’s strategy focuses on building a portfolio of high-quality, income-producing retail assets that are well located within the prime European city centres.
'As the fund’s first investment in Spain, this transaction is a welcome addition to the portfolio,' said fund manager Marc Langenbach. 'We intend to let the unit to an international retailer during the construction period and have already had strong interest. Over the coming months we will continue to expand our core high-street retail portfolio in Europe’s leading city centres.'
