Redevco and the Ares Management fund confirmed the purchase of the El Corte Inglés building on Carrer Portal de l'Àngel in Barcelona, one of the most important shopping areas in the city and the one with the highest rental price for operators. The operation has been articulated through the joint venture Redevco Iberian Ventures.
The total investment will amount to 200 million euros, which includes the purchase price of the building, as well as the funds foreseen for the renovation of the building, which has 18,000 square metres and five floors. This is one of the largest asset sales for El Corte Inglés, as part of its strategy of divesting properties it considers non-strategic.
One of the points to be solved will be the retail company's stay in the building. At present, it has a shop there that specialises in sportswear. Just over a year ago, it also opened a Samsung experiential space there. El Corte Inglés did not specify the future of the shop, other than to say that it will remain open in the coming weeks.
For the time being, the investors in Portal de l'Àngel want the building to be a mix of offices and retail space, which suggests a gradual exit of El Corte Inglés. Redevco and Ares want to "transform the historic building into a sustainable mixed-use building, with floors dedicated to prime retail and floors of state-of-the-art offices".
The transaction has involved the consultancy firm JLL and the law firm Pérez Llorca advising Redevco Iberian Ventures, and Cushman & Wakefield and Cuatrecasas advising El Corte Inglés.
"The property offers an attractive investment opportunity given its location in a prime shopping street with high tourist traffic and excellent connectivity for office users," said Israel Casanova, Managing Director of El Corte Inglés.