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Alpha Tiger Property Trust, advised by Alpha Real Capital, has announced the acquisition of the H2Ocio shopping centre in Rivas-Vaciamadrid, southeast of Madrid from Rivas Futura, part of the Spanish family owned real estate group Gedeco Avantis.

The acquisition price of EUR 83 mln is being funded by a EUR 75 mln seven-year debt package with no loan-to-value covenants, as well as mezzanine and equity finance of nearly EUR 15 mln.

The property provides nearly 50,000 m² of retail space across 120 units, a cinema and restaurants. Opened in June 2007, H2Ocio is currently 90%-occupied and offers 2,750 parking spaces. The centre has a net rental income of EUR 6.7 mln. The company has committed to invest a further EUR 5 mln in capital improvements over the next seven years.

'The investment by Alpha Tiger is an excellent opportunity to invest in a high-quality shopping centre in an excellent location near Madrid that offers scope to add value through ARC's asset management expertise and experience and benefit from the forecast strengthening of the Spanish economy over the medium term,' the company said. The investment marks its first outside of India and is line with the revised investing policy approved by shareholders in September 2009.

PropertyEU first reported the transaction last week, with market sources saying that the pricing of the transaction was very aggressive. The construction costs alone of H2Ocio are said to be around EUR 120 mln, sources said.