Unibail-Rodamco-Westfield Europe’s largest shopping mall owner (URW), reactivates splau saleone of three centers barcelona. According to real estate market sources informing El Periódico de España, Prensa Ibérica and Activos supplement, the listed company has put it back on the market just a year after it was forced to withdraw its assets due to a rapid increase in interest rates. The economics of the group.
URW did not organize an orderly processbut he is relying on Cushman & Wakefield’s advice to negotiate a potential sale even though there are no offers on the table, according to the same sources. While the real estate consultancy firm refused to evaluate the condition of the property, the shopping center company told this newspaper that “unfortunately” they do not comment only “about rumours”.
About a year ago, the European ‘king’ of shopping malls appointed consultancy for the sale of Splau. The process was progressing at a good pace and even the pan-European company Negotiated with German ECE fundIt is controlled by the Otto family. The operation was expected to have a before and after on the market because it was expected to achieve its goal. 350 million eurosAccording to two economic newspapers, largest transaction in this asset class since pre-pandemicIt is also a turbulent time when e-commerce is questioning the shopping mall model.
However, the monetary policy change implemented by the European Central Bank (ECB) in order to reduce inflation filled the macroeconomic situation with uncertainty and ruined the operationWhile some sources claim that ECE could not reach an agreement with the bank to finance the investment, others state that it withdrew while waiting for the economic clouds to disperse.
The profitability an investor needs to buy a shopping center at the end of the first half is around 5.85%, about 55 basis points higher than a year ago, according to consultancy JLL. This implies a decline in value of such assets by around 10% compared to mid-2022. If this increase in yields were transferred to Splau’s selling price, Unibail Rodamco Westfield would have to settle for one price. An amount around 315 millionless.
Splau in numbers
splau URW’s smallest shopping mall in Barcelona. The company owns La Maquinista and Glòries with gross leasable area (GLA) of 94,500 and 70,100 square meters; adding assets for sale 55,900 square meters159 stores and 2,800 parking spaces, including leading brands such as H&M, Media Markt, Lefties, Primark and Fnac.
Located in the town of Cornellà de Llobregat, this center receives 4.2 million visitors every yearAccording to statistics published by the facility. The asset was put into service in 2010. In 2011, Unibail Rodamco Westfield closed its 185 million euro acquisition of the real estate subsidiary of Acciona, the infrastructure company of the previous owner, the Entrecanales family.
Investment in shopping malls decreased
shopping center investment has been recording minimal volumes in recent months. Only 81 million euros were traded in the first half of 2023. Especially since the pandemic, such assets have fallen off investors’ radar and closed sales have been very few.
Many asset sales have been reactivated in recent months. Along with Splau, one of the most important is Islazul, owned by Nuveen Real Estate, which has reactivated its sale for approximately 250 million euros. According to different publications in the economic media, Moraleja Green, Equinoccio Park and Zielo Shopping complexes are also on the market.