Rivas Futura Retail Park Acquisition
3rd largest Retail Park in Madrid and 9th in the Spanish ranking.
We are pleased to inform that, as of February 6th, 2018 Lar España has reached an agreement to acquire a Prime Retail Park in Madrid for a price of €61.6 Mn, in the context of a highly accretive transaction. Rivas Futura is the 3rd largest Retail Park in Madrid and 9th in the Spanish ranking.
With this acquisition Lar España will become an undeniable leader in the Retail Parks segment, settling as the first landlord of main retailers in Spain, such as Leroy merlin or Media Markt. In terms of total operating GLA sqm, Retail Parks already represents c.32% of Lar España’s Retail portfolio.
Located in Rivas-Vaciamadrid, just 15km away from Madrid city centre and considered one of the major demographic and urban developments in Europe in the last 30 years, Rivas Futura is the dominant retail park within its catchment area and part of the only retail area in town. It has a catchment area of over 300,000 inhabitants living less than 10 minutes’ drive that benefit from excellent location, accesses and visibility.
Rivas Futura is comprised of 24 units, with an occupancy of 94% and a Net Initial Yield of c.6.0%. The investment stands out for being the dominant retail park in its area of influence, low competition around and best-in-class tenant line-up with long term contracts, such as Media Markt, El Corte Inglés, Kiabi, Conforama or Toys R Us that will benefit from synergies with LRE’s tenant portfolio.
This strong market share in retail parks have contributed to achieve synergies with tenants that operate in different Lar España’s retail parks and we believe that will also help to attract new tenants to Rivas Futura.
The asset has been acquired with €27.5 Mn of Bank debt. The cost of the financing is 2.279% all fixed with full amortization in 2020.