Property bought and sold last year with a value of more than 300 million eurosThat figure is 86% higher than in 2021, according to JLL, which represents 16% of the total investment in business assets, according to Savills. Major operations include Parque Mediterráneo (Cartagena), acquired by Frey for 83 million; Bahía Real in Camargo (Cantabria), acquired by Savills IM for 60 million; and Álcora Plaza in Alcorcón (Madrid), which was acquired by the AEW fund for 52 million.
Renting in a medium-sized park costs about 17.5 euros per square meter per month, and the yield (Returns) the ratio achieved by the owners ranges from 5.5% to 6.75% for the best assets for those located in secondary cities.
“We hope this industry continue to matter and consulting firm Savills says in its latest report that the profitability gap between parks and centers is maintained in the short to medium term.Investor appetite will continue for such assets, JLL consultancy states that lately, and especially those with a power locomotive, they are more resilient.”
Eduardo Ceballos, president of the Spanish Association of Shopping Centers and Parks, believes that although retail parks “have been successful in terms of sales and visitor numbers since they opened at the end of the year, they have long been a ‘secret’ format first in our country”. Also consider that It has become one of the most attractive asset classes.for both consumers and traders as well as investors”.
Why did they recover before the pandemic?
Alberto Bravo, Director of Property Management at Sonae Sierra for Spain and Portugal, explains why retail parks have largely recovered after the pandemic: “First, there is street access to the stores. Fear of being in closed places disappeared. In addition, businesses are very focused on needs that arise in the midst of a health crisis, such as food, decorations or do-it-yourselfers.”
Bravo and Ceballos agree that retail parks can integrate online commerce with physical commerce. Additionally, Sonae Sierra’s manager recalls: They are easier to manage assets and are seen as safer by investors.: “For example, the parks do not have underground parking or common areas, which requires more air conditioning, fire protection and waste treatment. Also, “managing 200 shopkeepers in a shopping mall is not the same as managing 20 businesses”.
New projects and the future of the industry
Four parks opened their doors last year: Mirasierra Gallery, Parque Comercial Sierra del Tormes, Nasas Nigrán and Parc Comercial Vilanova. According to AECC data, 22 new projects will be completed between 2023 and 2025.
The future of this kind of complex, tenant diversification, including companies from the health or sports industry, as well as entertainment and restaurant options. “Great strides are being made both in the consumption of construction and in environmental issues in operation. With the arrival of new operators, great strides are also being made in design, which will improve the whole”, explains Alberto Bravo.
Inbest sells its commercial parks
In recent weeks, several sales processes for trading assets have come to the fore, taking advantage of the good traction the market has shown over the past year. The latter belonged to the company Inbest Retail Parks SA, one of the investment vehicles of the director led by Javier Basagoiti. This fund put two centers on the market: Parque Comercial Taronja in Valencia and Las Rejas in Madrid. As reported by British broadcaster React News, authority has been transferred to Knight Frank consulting.
Las Rejas was acquired in 2018 and It is located in Las Mercedes Industrial Estate., on the axis of the A-2 motorway. It is built on a plot of more than 8,700 square meters and is leased to a total of eight operators: Urban Planet, Jysk, Éggo Cocinas, Tiendanimal, Feu Vert, TGB, Taco Bell or Momo. Taronja, for her part It is located in front of the Ribera del Xúquer Mall. It was acquired by Inbest in July 2016. It has approximately 8,500 square meters of commercial space and is occupied by Kiwoko, Burger King, Tedi, Electro Hiper, Maxcolchón and Pepco.
According to market sources reported to EL PERIÓDICO DE ESPAÑA from the Prensa Ibérica group, these are two assets. 100% rental and one surrender (profitability) 6%, with a certain appetite in the market; Although they refused to comment from Inbest.
Lar España explores the market
Listed real estate company Lar España, specializing in shopping malls and parks investigate the disposal of certain assets. Four in particular: the Vistahermosa Shopping Complex in Alicante; Abadía Commercial Park in Toledo; Prime Retail Park in Rivas (Madrid); and Vidanova Par Retail Park in Sagunto (Valencia). Although there is no official authorization to sell or a date to do so; about all assets of this type in its portfolio, except onein Bilbao.
All parks in Lar close approx 2022 27.2 million euros in revenue. Assuming that only the four mentioned are trading at a profitability similar to what Inbest, the commercial parks of the listed real estate company Can be sold for over 240 million euros.
“More interest in retail parks than shopping malls. In any case, we will see, the market is changing and there is not much momentum in the investment and divestment processes in the retail sector. Selling these four assets is an intention, but this is only a possibility because we have until 2025 to execute our business plan and dispose of 400 million assets,” said Lar España, “reclassifying the four assets as held for sale means they will be sold. It is a strict accounting problem that does not come.”