Intu has exchanged contracts to buy the Xanadú shopping centre in Madrid, for €530m – a 4.3% yield, from Ivanhoé Cambridge Group
The deal includes the shopping centre’s management company and the SnowZone operating company.
A €263 million five year term loan with Santander, BBVA, Credit Agricole and Caixabank has been secured on the asset, with the all-in cost of debt estimated to be around 2%.
Intu has said it is looking to bring an investment partner into the shopping centre and is currently discussing options with potential partners.
Intu chief executive David Fischel said: “Xanadú’s market position as an attractive shopping and leisure destination covering a major sector of Madrid, fits well with our strategy of focusing on prime regional shopping centres in both the UK and Spain. We see a number of compelling opportunities to further enhance Xanadú’s status, such as improving the leisure and catering offering, with a Nickelodeon theme park and an aquarium due to open in 2017, ensuring an enticing retail mix, which we believe will drive increased footfall and dwell time and ultimately improve rental levels and capital values.”
Alongside Xanadú, Intu now owns six Spanish malls including Asturias, Oviedo, Puerto Valencia and Zaragoza.
amber.rolt@estatesgazette.com
