LaSalle has acquired Las Mercedes Retail Park, located in the Barajas district of Madrid, on behalf of its pan-European open fund Encore +. The purchase price was not disclosed.
Completed in 2015, the retail park has a rental area of nearly 22,000 m2 and is fully let. It is made up of two buildings leased on a long-term basis from the Bauhaus DIY store and the Aldi discount supermarket.
The retail park in Eastern Madrid has a higher than average catchment area of 440,000 inhabitants and is next to the Mercedes Business Park, where over 12,000 employees work for companies like Coca-Cola, Vodafone, Fedex and DHL.
Mercedes Retail Park also benefits from good public transport connections, is close to the airport and is under 30 minutes by car from Madrid city centre.
On the environmental level, beyond the already existing photovoltaic panels, there are measures planned to increase the energy efficiency and sustainability of the asset over the long term, LaSalle said, along with environmental certifications which are in the process of being obtained.
“With Las Mercedes Retail Park, we have identified an exceptional opportunity to increase the exposure of Encore + to high-value, income-generating commercial assets with a strong urban profile and varied alternative use potential”, said David Ironside, manager Encore+ fund, LaSalle Investment Management.
The timing is good because vacancy rates in Madrid are at historic lows and the development pipeline is limited.
“The location is compelling as an established urban retail and office submarket, providing a mix of strong and high-performing tenants with a long-term profile,” said Ironside. “The asset will generate a stable and diversified income stream that will allow us to maintain a good return for our investors ”.
In this transaction, LaSalle was advised by Simmons & Simmons on legal and tax aspects, by Hollis Global on the technical and ESG levels as well as by RPE on the commercial level.