Intu Properties, TH Real Estate Close Madrid Shopping Centre JV.
M2 EQUITYBITES-August 1, 2017-Intu Properties, TH Real Estate Close Madrid Shopping Centre JV
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1 August 2017 - UK-based shopping centre operator intu properties plc (LSE: INTU) and TH Real Estate, on behalf of its pan-European investment vehicle, the European Cities Fund, have formed a joint venture to own Madrid Xanadu shopping centre in Spain, the firms said.
This 50/50 JV deal was announced in May. The centre was originally acquired by intu in March 2017.
Madrid Xanadu shopping centre is the retail and leisure destination for the south-west of Madrid and one of the top ten shopping centres in Spain.
The centre, which opened in 2003, has an annual footfall of 13m customer visits and an annual net rental income of EUR 23m.
Xanadu shopping centre provides around 220 retail, catering and leisure units. The two level retail mall includes key retailers such as El Corte Ingles, all of the Inditex fascias, Primark, Hand M, Apple and Mango.
In addition there is a leisure offering with SnowZone, Spain's only indoor ski slope, a 15 screen Cinesa cinema and Ilusiona bowling. This will be enhanced by an aquarium and Nickelodeon indoor theme park which are under development.
Intu acquired Madrid Xanadu in March 2017 stating at the time that it would look to introduce an investment partner.
TH Real Estate will acquire a 50% interest in the joint venture, which includes the centre and the SnowZone business but excludes the management company, for a price of EUR 264.4m (50% of the price paid by intu to entities of the Ivanhoe Cambridge Group) before net debt, working capital and other adjustments.
Intu will use the net proceeds of the transaction to repay debt on its revolving credit facility. The joint venture arrangements provide that intu will continue to be the manager of the centre.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Aug 1, 2017|
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