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TH Real Estate acquires 50% stake in Xanadú Shopping Centre, Madrid

Xanadú Shopping Centre, Madrid

TH Real Estate has agreed to enter into a 50:50 joint venture partnership with intu properties plc, acquiring a 50% stake in the Xanadú Shopping Centre in Madrid, Spain.

The 50% stake, agreed at a net purchase price of €264.4m, is being acquired on behalf of TH Real Estate’s flagship pan-European investment vehicle, the European Cities Fund, which was launched in 2016.  

The European Cities Fund targets income-producing properties in “future-proof” cities across Europe. Backed by extensive research, the Fund targets investments that are well-positioned to benefit from long-term growth. Xanadú Shopping Centre fits strategically within the target initial portfolio being assembled.  

Located southwest of Madrid, the asset totals 119,227 sq m (1.3 million sq ft) over two levels and features a prime retail line up including Decathlon, Primark, H&M and the Inditex Group. As testament to the strength of the centre, Apple, Hollister and Forever 21 all chose Xanadú as the location for their first Spanish stores. It also boasts a best- in-class leisure offer, including Snowzone, Southern Europe’s only indoor ski slope, as well as a cinema and bowling alley. The property benefits from an external car park with c.8,000 parking spaces. It has good accessibility to Madrid via the A-5 highway and 18 bus lines connecting the scheme to the Madrid city centre and surrounding municipalities.   

Andrew Rich, European Cities Fund Lead Fund Manager, TH Real Estate, comments: “Xanadú is a super prime shopping centre with a first-rate tenant line up and extensive asset management potential. Future plans to further enhance the leisure element of the scheme cement its position as an asset that is well-positioned to deliver a robust income return.“  

Marta Cladera de Codina, Head of Iberia, TH Real Estate, adds: “Madrid is one of the future-proof cities identified by our research team, thanks to its strong GDP growth and a GDP per capita that is higher than the national average. Located just 20km from Madrid’s city centre, with over four million consumers located within a 30-minute drive of the centre, Xanadú benefits from these demographic fundamentals and we believe in its long-term ability to deliver returns for our investors.”   

Xanadú Shopping Centre represents the fourth standing acquisition for the Fund, following investment into Meraville Retail Park, Bologna, the Omni Centre, Edinburgh, and the Kamppi Centre, Helsinki.

Issued by Nuveen Real Estate Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Nuveen Real Estate Management Limited provides investment products and services. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice. COMP201700313