Castellana Properties, a listed company specialised in the acquisition and management of retail assets in Spain and Portugal, has signed an agreement with Henderson Park, an international real estate investment manager, and Eurofund Group, an international investment, development and real estate management group with a strong track record in Europe, for the acquisition of the company that owns the Islazul shopping centre, located in the Carabanchel district of Madrid, for a total of €340 million.
Following this acquisition, Castellana Properties’ portfolio will reach 23 assets, with a gross lettable area (GLA) of 692,105 sqm and a gross asset value (GAV) of more than €2.222 billion. The transaction is expected to close on 30 April.
This transaction is aligned with the company’s strategy of investing in leading assets within their catchment areas, with growth potential through active management and value-add projects. Islazul is one of Madrid’s most important shopping and leisure destinations, with a gross lettable area (GLA) of approximately 90,000 sqm and annual footfall of close to 12 million visits, more than 40% of which come from pedestrian traffic or public transport.
The asset stands out for its strategic location opposite the M-40 ring road, with 4,100 parking spaces, excellent public transport connections and a strong catchment area of more than 1.9 million inhabitants within a 15-minute drive.
Alfonso Brunet, CEO of Castellana Properties, stated:
“Islazul is a prime urban asset with strong operating fundamentals, a highly consolidated customer base and clear long-term value creation potential. Our portfolio optimisation strategy, following the sale of our retail park portfolio in recent weeks, has enabled us to strengthen our position and invest in this strategic asset, aligned with our long-term vision. Thanks to our active management model and the experience of our team, we are confident that we will continue to drive the growth of the shopping centre through different projects, generating sustainable value for investors, operators and communities.”
Christophe Kuhbier, Head of Investments for Europe at Henderson Park, commented:
“During the challenging period faced by the retail market following the global financial crisis, dominant shopping centres remained a priority investment focus for Henderson Park. We acquired Islazul 24 months ago, at a time of significant market corrections, which allowed us to access an irreplaceable, market-leading asset in its catchment area at unusually attractive yield levels.”
Ion Saralegui, CEO of Eurofund Group, added:
“This transaction reaffirms our commitment to leading retail destinations and highlights the successful repositioning of Islazul carried out together with Henderson Park. In just two years we have transformed the centre, improving its tenant mix, its commitment to sustainability and its long-term competitiveness. The recent BREEAM certification is further evidence of our vision to position Islazul as a national and international benchmark.”
Since its opening in 2008 and a partial refurbishment in 2019, Islazul has consolidated its retail and leisure offer with more than 180 brands, including key tenants such as Zara, Primark, Lefties, MediaMarkt, JD and Lidl, complemented by a strong leisure and food & beverage offering with 40 venues, including Yelmo Cines, Ilusiona, Burger King, McDonald’s, Tony Roma’s and Foster’s Hollywood.
The most sustainable shopping centre in the world
The Islazul shopping centre has an ambitious ESG strategy that positions it as the most sustainable shopping centre in the world. It is the first shopping centre to obtain the BREEAM “Outstanding” certification, achieving the highest score not only in Spain but worldwide. This recognition is the result of a strong commitment to sustainability, including the installation of solar panels, the use of 100% renewable electricity in common areas, high energy efficiency and responsible waste management, fully aligned with Castellana Properties’ ESG strategy.
Islazul also integrates innovation and sustainable mobility into its management model through Smart Property technology, a digital platform for electric vehicle charging and the development of a Sustainable Mobility Plan for employees and visitors.
About Castellana Properties
Castellana Properties (YCPS) is a Spanish listed real estate investment company (SOCIMI) founded in 2015, specialised in the acquisition and management of shopping centres and retail parks in Spain and Portugal. The company has been listed on BME Growth since 25 July 2018.
Owner of 23 shopping centres and retail parks in Spain and Portugal with a gross lettable area of 692,105 sqm, the total value of the company’s portfolio stands at around €2.222 billion. Specifically, Castellana Properties operates assets in Asturias, Castile and León, Extremadura, Madrid, Andalusia, Murcia, the Valencian Community and La Rioja in Spain, and in Lisbon, Sintra, Funchal (Madeira) and the Northern region (Porto) in Portugal.
Castellana Properties holds a BBB rating with stable outlook from Fitch Ratings, has once again been recognised with the EPRA BPR and sBPR Gold Awards from the European real estate association, has achieved a 5-star rating in the GRESB ranking, and 100% of its assets are BREEAM-certified and aligned with CRREM. In addition, Castellana Properties has obtained the Great Place to Work® certification, with an employee trust rate of 91%
For more info: https://castellanaproperties.es/
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