Spanish REIT Lar Espana has confirmed the acquisition of As Termas shopping centre in the north-western Spanish city of Lugo, as tipped by PropertyEU in March.
Spanish REIT Lar Espana has confirmed the acquisition of As Termas shopping centre in the north-western Spanish city of Lugo, as tipped by PropertyEU in March.
The Spanish company is buying the 45,000 m2 regional shopping centre from the Abu Dhabi Investment Authority (ADIA) for 鈧�67 mln.
ADIA, acting through asset manager LaSalle IM, bought the shopping centre in 2005 from ING鈥檚 Spanish development arm Promodeico and hypermarket group Eroski for around 鈧�100 mln, or an initial yield of just over 6%.
Opened in 2005, the mall is anchored by a 12,000 m2 Eroski hypermarket and includes 110 shops and restaurants in the two-level gallery as well as 2,200 parking spaces. Tenants include Zara, Bershka, Cortefiel, H&M and Miro.
Following this transaction, Lar Espana has invested a total of 鈧�526 mln, well above the 鈧�400 mln raised through its IPO. Retail assets represent 52% of Lar Espana's holdings at present.
'With this transaction, 90% of our property portfolio consists of income-producing assets which will make a direct contribution to our net rental income and at the same time will help consolidate our cash flow in the short term,' commented Jos茅 Luis del Valle, president of Lar Espana.
