After the Covid-19 pandemic that boosted e-commerce and punished physical stores, investor interest in retail real estate assets has returned. Nuveen is going to test the market with the sale process of one of the largest shopping centers in Spain, Islazul, which is located in the Carabanchel district of Madrid, next to the M-40 ring road.
This US firm, which manages the real estate assets of the California teachers' pension fund, has commissioned the sale process to the consulting firm Cushman & Wakefield, which declined to comment in the same way as Nuveen itself. The owner is asking around 320 million euros for that asset, according to market sources.
Islazul is a complex of 250,000 sqm, with 90,700 sqm of gross leasable area. Nuveen (then called TH Real Estate) acquired it in 2014 from Lar (50%) and Ivanhoé Cambridge (50%) for 230 million. In 2017, he bought the hypermarket area from E.Leclerc, which he renovated and is now occupied by a Lidl supermarket and other stores.
Islazul, which is advertised on its website as the largest shopping center in Madrid, has 180 stores. Brands include Primark, Zara, H&M, Adidas, Levi's and Kiabi. It also has almost 50 restaurants, including Vips, Starbucks, Rodilla, Ribs, KFC, Foster's Hollywood and Burger King.