12th Mar 2007 10:01
British Land Co PLC12 March 2007 12 March 2007 LARGEST SPANISH OUT OF TOWN RETAIL INVESTMENT TRANSACTION AGREED British Land and the closed-end fund PREF have formed a joint venture to acquirea prime regional shopping centre and retail park in Murcia, Spain for circa €350million from Deparcom (a joint venture between Eroski and Grupo Trusam).Completion of the transaction is anticipated before the summer followingsatisfactory due diligence. Known as Nueva Condomina and located in the city of Murcia, south eastern Spain,the 120,000m2 scheme encompasses a 60,200m2 two-storey enclosed shopping centreand a 44,400m2 retail park. The shopping centre includes a 15 screen multiplexand a 13,700m2 Hypermarket. There is dedicated parking for 6,500 cars. The shopping centre opened in September last year and the retail park completesduring March. Both the centre and the park are 96 per cent let. Tenants includeall the Inditex brands, Primark, FNAC, H&M, Leroy Merlin and Media Markt. Eroskiwill owner-occupy the hypermarket. Valentine Beresford, British Land said: "Prime out-of-town retail developmentsof this standard are becoming very rare in Spain and there is clear evidencethat more international retailers are pushing into the country which will bodewell for real rental growth. This scheme is well let and can be enhanced furtherby our asset management team. The investment delivers critical mass in theSpanish market when added to the Puerto Venecia, Zaragoza development and ourother Iberian-based PREF assets. "With the completion of this transaction, PREF has more than achieved its mid2007 target of acquiring or contracting on a portfolio in excess of €1 billionwhich makes PREF the largest owner of out-of-town retail parks in western Europewith a contracted or acquired portfolio of over 464,000 m2. We are very pleasedwith the quality and diversity provided by the locations of our 19 assets and wecontinue to actively seek further opportunities." Cushman Wakefield advised British Land and PREF Notes to editors: British Land's interests in Europe include retail parks in Spain, Italy,Portugal, Belgium, Switzerland and France through its property advisor role and40 per cent holding in PREF. Assets owned and committed in PREF total some €744million. Puerto Venecia, Zaragoza, is 2.1 million sq ft retail and leisure scheme beingdeveloped through a joint venture between British Land, a group of Europeanprivate investors and the Spanish construction company Copcisa Corp. PREF (The Pillar Retail Europark Fund) is a seven year closed-end fund createdin 2004 investing in out-of-town retail parks in the Eurozone. PREF is advisedby British Land European Fund Management, a partnership between British Land andDoric Properties Ltd. PREF's Iberian based assets are: Portugal - Portimao Retail Park, Portimao;Aveiro Retail Park, Aveiro; Sintra Retail Park, Lisbon. Spain - Nassica Retail &Leisure Park, Madrid; PC City Unit, Madrid and Palma de Mallorca. The regional catchment for Nueva Condomina is circa 2.5 million people within 60minutes. Nueva Condomina retailers include Zara, Massimo Dutti, Bershka, Primark, H&M aswell as other notable brands, Benetton, Etam, and Cortefeil. The retail park has strong trading DIY, electrical and furniture storesincluding: Leroy Merlin, Media Markt, Conforama and Forum. Media Enquires: British Land: Laura De Vere, Tel: +44 20 7467 2920/Mobile: + 44 (0)7739 292920 PREF: Financial Dynamics Dido Laurimore, Tel: +44 20 7831 3113 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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