ActivumSG Iberia Fund I adds to its portfolio of Spanish shopping centers with a €61 million purchase from Klépierre
Jersey (UK), September 20th, 2016 – A fund managed by ActivumSG Capital Management Ltd. (ActivumSG), the turnaround specialist focused on European real estate investments, has added to its portfolio of Spanish shopping centers by purchasing three properties from Klépierre for €61 million.
Activum SG Iberia Fund I has completed the acquisition of two centers in the affluent suburbs of Northwest Madrid and a third in Cáceres, the historic city in Southwest Spain. The transaction follows the fund’s acquisition since June 2015 of the Heron City retail and leisure complex in Barcelona and Bilbao’s Zubiarte shopping center.
Saul Goldstein, Founder and Managing Partner of ActivumSG, said: “Spain’s prolonged economic crisis has left many shopping centers, like these, in need of fresh investment and hands-on management. We see this as a great investment opportunity as the economic recovery takes root, giving shoppers more confidence to spend. This off-market transaction typifies the approach that we have taken with other assets in Spain and in Germany, where our local teams transform properties into stable income-producing assets that will appeal to potential buyers, generating attractive returns for our investors.”
The acquired properties are all non-core assets that Klépierre obtained in its takeover of Corio last year, namely:
- The Sexta Avenida shopping center, a two-story 16,800 sq.m. property with a vacancy rate of 24%.
- The 21,600 sq.m. Espacio Torrelodones retail gallery with 83 retail units attached to an Alcampo hypermarket, which is not included in the transaction.
- The 8,300 sq.m. Ruta de la Plata retail gallery in Cáceres with 64 retail units that are that are occupied by tenants including the fashion brands Pull & Bear, Stradivarius and Bershka.
The transaction means that more than 65% of the €200 million of equity raised by the fund at last year’s final close is now fully committed. The fund is on course to be fully deployed during the third quarter of 2016 given the current investment pipeline. Other investments include iconic high street retail in Madrid, hotels under construction in the city centers of Madrid and Malaga and residential developments in Madrid and Alicante.
Advising the Fund were: Cushman & Wakefield, Linklaters, Hill International and Malcolm Hollis.
ActivumSG Capital Management Ltd. is a Jersey-based real estate investment manager that invests throughout Europe, with a current focus on Germany and Spain. Saul Goldstein founded the group in 2007 when he left Cerberus, where he held a variety of senior roles. ActivumSG currently advises four discretionary closed-end real estate funds with a total of approximately €1 billion of assets under management. ActivumSG funds have multiple real estate-focused investment strategies, which include mezzanine lending, corporate acquisitions and owning high quality properties with significant unrealized potential. Through hands-on asset management by its local teams, ActivumSG repositions properties so that they generate the stable cash flows that appeal to prospective institutional buyers. ActivumSG Capital Management Ltd. is regulated by the Jersey Financial Services Commission. For more information, visit the website at www.activumsg.com
Phone: +44 20 7947 4076