Kennedy Wilson Europe Real Estate has bought a majority stake in a shopping centre in Madrid for €71m (£52.2m).
It has bought 95.2% of La Moraleja Green from ING Real Estate. The price paid reflects a yield of 6.2%. The acquisition was funded from the company’s cash resources.
La Moraleja Green is located in La Moraleja Business Park in the north of Madrid. The centre totals 318,700 sq ft. KWE’s interest is 303,500 sq ft, with the remaining 15,200 sq ft owned and occupied by Spanish supermarket chain Sanchez Romero.
It has 1,296 parking spaces and over 80 retailers, cafes, bars and restaurants as well as an eight-screen cinema. Occupiers include Zara, Zara Home, Massimo Dutti, Oysho, Cos, H&M, Michael Kors and Carolina Herrera. It has an existing occupancy of 80% and generates €4.5m of revenue per annum.
The deal is the company’s first shopping centre acquisition in Spain and its portfolio in the country now totals £155.4m across 20 assets representing 5.8% of the total £2.7bn portfolio.
Mary Ricks, president and chief executive of Kennedy Wilson Europe, said: “La Moraleja Green is one of Madrid’s most established shopping destinations and provides KWE with significant value enhancing asset management opportunities. There are large reversions to be captured, both by letting up the vacant space and improving existing rents, which sit circa 20% below its competition.”
