Three Spanish banks and a French bank have provided a €263 million loan to shopping centre investor Intu to fund its purchase of a mall in Madrid, Spain.
The all-in cost of debt is estimated to be around 2 percent and the financing deal reflects a loan-to-value ratio of just below 50 percent.
Intu has bought Xanadu for €530 million from Ivanhoé Cambridge Group, along with its associated management company and the SnowZone operating company. The centre itself, excluding the management company and SnowZone business, was externally valued on 1 February 2017 at €526 million, which represents an initial yield for the centre of 4.3 percent based on its annual net rental income of €23 million.
Intu said that it is aiming to find an investment partner for Xanadu and is “currently progressing discussions with potential partners”.
The purchase brings the number of Spainish shopping centres in Intu’s portfolio to three, commented Intu’s chief executive, David Fischel.
“Xanadu’s market position as an attractive shopping and leisure destination covering a major sector of Madrid fits well with our strategy of focusing on prime regional shopping centres in both the UK and Spain,” said Fischel.
As well as Xanadu, Intu owns shopping centres in Asturias, Oviedo and Puerto Venecia, Zaragoza. Xanadu is located in the south west of Madrid in a catchment area including some of the wealthiest areas of the city. The centre, which opened in 2003, provides around 220 units. Tenants include El Corte Ingles, all of the Inditex brands, Primark, H&M, Apple and Mango.
The scheme also includes Spain’s only indoor ski slope, a 15-screen Cinesa cinema and Ilusiona bowling. An aquarium and Nickelodeon theme park are due to open this year.