FREY buys Algarve Shopping and Albufeira Retail Park for €179.3M

FREY buys Algarve Shopping and Albufeira Retail Park for €179.3M

This is the first investment in Portugal from the company specialised in real estate development, promotion, investment and management. JLL’s Capital Markets department was in charge of this operation, acting on behalf of the investor. RPE represented the seller. Sonae Sierra will keep managing the complex.

This operation is in line with Sonae Sierra’s strategy of capital recycling and reinforcing its service provision activity. Fernando Guedes de Oliveira, Sonae Sierra’s CEO, stated: «we are very happy with this transaction, which is one more landmark towards implementing Sonae Sierra’s strategy and a recognition from the market of the high quality of the real estate assets in which we invest. The fact that we will continue managing and marketing the Algarve Shopping and the Albufeira Retail Park demonstrates the investors’ confidence on our experience and know-how and their continued bet on Sonae Sierra as a partner of choice on all the locations where we are present».

Fernando Ferreira, Head of Capital Markets at JLL, commented «this is one the largest investment operations so far this year and it reflects the Portuguese market’s vitality, not just because it attracted a new investor, but for the scope of the deal and for involving such an important asset».

Fernando Ferreira explained that «this commercial complex, constituted by the shopping centre and the retail park, is a high-quality asset, with an occupancy rate of practically 100% and more than 7.5 million visitors per year. Furthermore, it has an enormous potential to add value, in tandem with its new owner’s strategy».

FREY also specialises in urban renewal operations and the development and operation of open-air shopping centres. It plans to begin the renewal program of this complex (which opened in 2001 and was expanded in 2004) so as to implement its Shopping Promenade® concept, which conjugates shops and leisure activities. One of the major new features will be the 9.000 sqm ABL expansion.

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