Alpha Real Trust refinances €65m loan against Spanish mall

Alpha Real Trust has completed the refinancing of a facility secured against a shopping centre in Madrid with a new €65 million loan from German bank Aareal.

Alpha Real Trust has completed the refinancing of a facility secured against a shopping centre in Madrid with a new €65 million loan from German bank Aareal.

In addition, Alpha Real Trust’s investment arm, Alpha Real Capital, sold a 70 percent share of the H2O Rivas Shopping Centre, in south east Madrid, to CBRE Global Investors for an undisclosed price.

The Aareal loan was used to partly repay a previous bank loan, which had been provided by a syndicate of banks and which was due to be repaid in October this year.

The new margin of 1.80 percent – 1.70 percent on swapped fixed rate borrowings – represents a significant saving on the previous financing which had a weighted average margin of 2.50 percent.

CBRE Global Investors (GI), the real estate investment management business of property services firm CBRE, acquired the stake on behalf of its European Co-investment Fund (ECF), its European-focused value-add platform.

Alpha Real will retain the remaining 30 percent and will act as the operating partner.

The 520,000 square foot shopping center is located in Rivas Vaciamadrid, one of the fastest growing districts in the Spanish capital. The asset comprises 130 units across two floors and is 92 percent leased to tenants including Nike, H&M, Mango and Mercadona. CBRE GI said it would renovate the mall to enhance the tenant mix and strengthen its food and beverage options, as well as potentially expanding the property into nearby development land.

CBRE GI held a final close for ECF in February 2016, raising approximately $840 million from a group of North American and European investors. The firm said the closed-end fund had invested in value add real estate across Europe, with a focus on building or re-positioning assets in the retail and logistics sectors to create core product in supply-constrained markets.

Retail Partners Europe and Jones Day advised CBRE Global Investors on the transaction.

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