Intu bought the shopping centre from Ivanhoé Cambridge for 530 million euros in March in a record operation for the Spanish market and, from the moment of acquisition, was their clear intention to share 50% of the property. The 50% share, agreed at a net purchase price of 264.4 million euros, will take place through the star European investment vehicle of TH Real Estate, the European Cities Fund, launched in 2016.
The fund’s objective is to invest in real estate assets generating rents in European cities prepared to face the future. Thus the fund identifies investments well placed to benefit form long-term growth. The Xanadú shopping centre meets strategically the portfolio objectives, in its phase of structuration, according to spokesman from the company.
In South West Madrid, the asset covers an area of 119,227 m², on two floors, with a first rate retail space. There are also excellent leisure facilities, including Madrid Snowzone, a cinema and a bowling alley. There is exterior parking for about 8,000 vehicles with easy access to Madrid via the A-5 motorway. There are 18 bus lines connecting the centre with the centre of Madrid and nearby areas.
Andrew Rich, Chief manager of European Cities Fund at TH Real Estate, commented, “Xanadú is a prime commercial centre with a selection of top retail tenants and high management potential to improve the entertainment and leisure component, thus pointing it out as a well situated asset to secure solid profits.”
Marta Cladera de Codina, Business Director at TH Real Estate for Iberia adds that, “According to our analysis team, Madrid is one of the cities prepared to face the future, thanks to the growth of its gross interior product and a GDP per capita higher than the national average. Located at just 20 km from the city centre and with more than 4 million consumers less than half an hour by car from the centre, Xanadú benefits from these demographical basics and we believe in its capacity long-term to generate profits for our investors.
The Xanadú shopping centre is the fourth permanent acquisition of the Fund after Meraville Retail Park (Bologna), Omni Centre (Edinburgh) and Kamppi Centre (Helsinki).