Sonae Sierra and APG sell 50% of portfolio to create Sierra Prime

Sonae Sierra and APG sell 50% of portfolio to create Sierra Prime

This is the latest joint venture specialised in prime shopping centres in Iberia, which will be shared in equal parts by each investor – owning each a 25% share – and it will be focused in improving and developing its current portfolio over the next 15 years.

The portfolio includes 4 assets located in Portugal over which the new joint venture has different shares. It has 50% of shopping centres Colombo and Vasco da Gama in Lisbon and also 50% of NorteShopping in Porto. The joint venture has full control of CascaiShopping. The price of the 4 Portuguese shopping centres was estimated in 800 million euro, according market resources close to the process. 

The other two shopping centres are located in Malaga, Spain: Plaza Mayor, of which Sierra Prime owns 100% and the McArthurGlen Designer Outlet Málaga of which it has a share of 50%. This means that Sierra Prime controls 1.800 million euro of this portfolio’s gross value, whose total reaches 3.000 million euro. According to the release through which the news were advanced, the management of these assets will remain with Sonae Sierra.

The price of this operation has initially released was around 525 million euro, but new information released by market sources close to the process have indicated that the real value of this deal (which includes financing) is around 900 million euro. 

«This is an historical transaction for the Iberian retail real estate market and for Sonae Sierra. We are very happy for following through with our successful long-term partnership with APG, and, at the same time enthusiastic for welcoming Allianz and Elo to Sierra Prime», commented Fernando Guedes de Oliveira, Sonae Sierra’s CEO.

Robert-Jan Foortse, from APG European Property Investments, confessed he was «very happy» with this new partnership, which should «help develop and grow these prime assets».

Jerome Berenz, who is responsible for indirect investments at Allianz Real Estate stated that he was also «very happy in building a relation with APG, Sonae Sierra and Elo, with whom we share a long-term strategic vision focused on prime assets».

For Elo’s director Timo Stenius, «the Serra Prime joint venture fits Elo’s real estate investment strategy. We are very happy with our first investment in the Iberian real estate investment market, along with referential institutional investors».

In this operation, Sonae Sierra and APG were advised by Morgan Stanley, with the co-advising of Banco Santander Totta and law firm Freshfields Bruckhaus Deringer LLP. Allianz and Elo had the support of law firm Uría Menéndez, and for matters of Dutch law, legal firm De Brauw.

Last Update 6/8/2020

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