Resolution Properties has acquired an 890,000 sq ft freehold retail park in Bilbao, Spain, from Arcona Iberia and their joint venture partners.
The £177m off-market deal was financed by Hypo Real Estate Bank International and Royal Bank of Scotland.
Megapark Barakaldo, located off the A8 motorway which links Bilbao city, to Santander, Vitoria and San Sebastian, has over 1.3m sq ft of retail space anchored by owner occupiers Ikea and Leroy Merlin.
Developed in three phases, the first phase of development consisted of 480, 000 sq ft of warehousing and opened for trade in 2004, at the same time as Leroy Merlin and Ikea.
The second phase of development is a 215,000 sq ft gallery, in the early stages of leasing, and is due for completion soon.
The final phase of development comprises 200,000 sq ft of leisure, scheduled for completion in spring 2006, will be anchored by an 11-screen cinema with IMAX.
The Megapark Barakaldo is the first fully integrated regionally-dominant retail and leisure park of its kind in single ownership to be developed in Spain.
Nigel Robson, Director of Resolution, said: “This is one of the strongest and most impressive retail park investments in Europe in terms of its location, critical mass, tenant mix and design.
“The developer has done an excellent job in creating a first class product with a first class tenant line-up.
“In conjunction with our agents Jones Lang Lasalle we have been presented with an excellent platform upon which to implement the opportunities we have identified that will further improve the quality of the asset.”
Resolution Property currently has around £200m of equity to invest in European property, as part of a £1.3bn investment programme for its European and US investors.
Spain and Portugal are among a number of European locations targeted for investment, particularly in the retail warehousing sector.
The Megapark Barakaldo acquisition follows the purchase late last year of the Centro Commercial Carrefour retail park, in Aveiro, Northern Portugal, by an investment vehicle owned jointly by Resolution and Madford Developments Ltd.
Resolution was advised by Jones Lang LaSalle and Lovells.
References: EGi News 26/01/06
