ACQUISITIONS
Intu Properties makes inroads in Spain
The owner of some of the largest shopping centres in the UK has agreed to acquire Xanadú shopping centre in Madrid from the Ivanhoé
Intu Properties’s expansion into Spain is gaining traction. The owner of some of the largest shopping centres in the UK has agreed to acquire Xanadú shopping centre in Madrid from the Ivanhoé Cambridge Group as well as the mall’s associated management company and the SnowZone operating company, for a total cash consideration of €530m. Intu Properties expects its Spanish asset portfolio to have grown to €2bn in the next six months. The group now owns Spanish assets worth about €1.3bn. The Xanadú centre, excluding the management company and SnowZone business, was externally valued on February 1 at €526m, which represents an initial yield for the centre of 4.3% based on its €23m annual net rental income. A €263m five-year term loan with Santander, BBVA, Credit Agricole and Caixabank had been secured on the asset, with the all-in cost of debt estimated to be around 2%. The balance of the consideration will be met from Intu’s resources. The acquisition is expected to be earnings accretiv...
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