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Transactions - JANUARY 22, 2018

AXA Investment Managers pays €230m for shopping center in Lisbon

by Released

AXA Investment Managers – Real Assets has completed, on behalf of clients, the acquisition of the Dolce Vita Tejo shopping center in Lisbon, Portugal, for €230 million ($282 million).

“This acquisition is further evidence of our confidence in the recovering Southern European retail market, while it has provided us with a unique opportunity to meaningfully enter the Portuguese capital,” said Hermann Montenegro, head of asset management & development, Iberica at AXA IM – Real Assets. “The redevelopment program that is currently under way is focused on enhancing the value of this well-located asset to further cement it as one of the country’s leading shopping destinations, for the benefit of our clients. We look forward to creating a next-generation retail experience that innovatively embraces the changing trends in consumer behavior and is aiming to position Dolce Vita Tejo as a high-performing asset for the long term.”

The asset has been acquired from Baupost and Eurofund Group, which is currently undertaking a redevelopment program, aiming to reposition the center as Portugal’s premier retail and leisure destination experience. Eurofund and Baupost will continue to act as operator and development manager, respectively, for the asset until completion.

Attracting an annual footfall of 15 million, Dolce Vita Tejo is currently the second-largest shopping center in Portugal totaling 860,000 square feet, spread across two floors and four adjoining levels of parking. The 274 retail units are more than 90 percent let to a range of retail, leisure and food and beverage tenants, offering a compelling proposition that has proved attractive to customers.

The significant redevelopment program, to be completed in 2019, will deliver additional lettable space and units, reinforcing the asset’s position as Lisbon’s leading retail and leisure destination.

On completion, the scheme will provide a first-of-its-kind entertainment offering in Portugal to include a water park, virtual reality games and flight simulators, along with a theme park totaling 54,000 square feet. A site-wide refurbishment will also see additional pop-up facades, a new entrance, increasing visibility and improved access via a new bus stop. Lease re-gears for increased floor space have already been secured with several anchor tenants.

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