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NEINVER and TIAA have acquired 50,000 sq m Nassica Retail & Leisure Park in Madrid

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A joint venture between NEINVER – an industry-leading company specialised in property investment, development and management, and TIAA – a fortune 100 financial services organisation, has completed the purchase of Nassica, an outdoor retail park. TH Real Estate act as investment advisor for the joint venture.

Located in Getafe, just south of Madrid, the 55,000 sq m (592,015 sq ft) asset has 46 retail and lifestyle tenants including a multiplex cinema and multiple bars and restaurants.

Acquired from a joint venture between KKR, a leading global investment firm and NEINVER, Nassica attracts over six million visitors per annum and has experienced significant footfall growth over the past two years under NEINVER’s management. NEINVER, who originally developed the property will continue to have a stake in the asset and remains the property manager.

The joint venture partnership was formed in 2014 to acquire prime outlet malls across Europe. It already owns The Style Outlets in Roppenheim, France, and Viladecans, recently opened in Barcelona, Spain as well as Factory Outlet brands in Warsaw and Krakow, Poland. The venture also owns Futura Park in Krakow.

Whilst Nassica is not an outlet mall, it lies immediately adjacent to Getafe The Style Outlets, a €100m outlet mall that the joint venture has acquired. With this acquisition, the joint venture will own and control approximately 80,000 sq m (861,113 sq ft) of retail, dining and leisure space – one of the largest concentrations of its type under sole ownership in Madrid – thus laying the foundation for enhanced growth potential for the future.

Nassica is strategically located close to the junction of the A4 (Madrid – Cordoba Motorway) and the M50 outer ring road. The site has strong visibility and accessibility from the highways, making it highly accessible to the wider catchment in the south of Madrid. The park is anchored by strong retail brands including Carrefour, Media Markt, Conforama, Toys R Us and C&A. It has a direct connection with the adjoining outlet mall and there is a high frequency of cross shopping.

The acquisition enhances TH Real Estate’s Iberian management portfolio. Outside of the JV agreement with NEINVER, TH Real Estate manages a c.€1bn portfolio of nine shopping centres across the region, on behalf of other third-party clients.

Carl White, Director of European Retail Investments, at TH Real Estate, said: "The acquisition expands our successful European joint venture with NEINVER and TIAA. Spain has undergone considerable economic reforms that have put it in a good position to continue outperforming the Eurozone in terms of growth over the medium term. Madrid and Barcelona are leading the national recovery, and this has been reflected in soaring liquidity levels in the retail investment market. Combined with a tight planning regime for retail space and highly-favourable catchment income demographics, we believe this scheme will deliver attractive returns over the long term. The acquisition was of great strategic importance, given our ongoing negotiations to acquire the adjacent Getafe The Style Outlets, which has now successfully concluded. It provides us with an incredibly rare opportunity to provide customers with a compelling retail, dining and leisure experience in one of the best cities in Europe."

Eduardo Ceballos, NEINVER country head for Spain, adds: "As a reference shopping and leisure center of the southern area of Madrid, Nassica is a strategic asset for our joint venture with TIAA and we believe the centre will benefit very positively under this alliance. The renovation and makeover to modernise the centre’s facilities carried out in 2015, under our management, have been a turning point in the performance of the asset, which currently enjoys a 97% occupation. We are delighted to continue contributing with our know-how and specialised management to maximise Nassica’s excellent results."

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the The TIAA General Account is an insurance company account and does not present an investment return, and is not available to investors. TH Real Estate is a real estate investment management holding company owned by Teachers Insurance and Annuity Association of America (TIAA). TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors, LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Teachers Personal Investors Services, Inc., member FINRA. Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. 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. COMP201600420

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