TH Real Estate and intu have entered into a joint venture partnership, acquiring a 50% stake in the Madrid Xanadú shopping centre, Spain.
The 50% stake, agreed at €264.4m (£229.5m), is being acquired on behalf of TH Real Estate’s flagship pan-European investment vehicle, the European Cities Fund, launched in 2016.
The fund targets income-producing properties in “future-proof” cities across Europe.
Located southwest of Madrid, the asset totals 1.3m sq ft over two levels and has 220 shops, including Decathlon, Primark, H&M and the Inditex Group and 8,000 car parking spaces.
Apple, Hollister and Forever 21 all chose Xanadú as the location for their first Spanish stores.
The leisure offering includes SnowZone, southern Europe’s only indoor ski slope, as well as a cinema and bowling alley. An aquarium and Nickelodeon indoor theme park are also under development.
intu acquired Madrid Xanadú in March 2017 for €530m with intent to introduce an investment partner. TH Real Estate’s 50% interest in the joint venture includes the centre and the SnowZone business but excludes the management company. intu will use the net proceeds of the transaction to repay debt on its revolving credit facility.
To send feedback, e-mail Shekha.Vyas@egi.co.uk or tweet @shekhaV or @estatesgazette
