TH Real Estate invests €264m in Spanish mall
Intu Properties and TH Real Estate, on behalf of its pan-European investment vehicle, the European Cities Fund, have agreed to form a joint venture to own Madrid Xanadú shopping center in Spain.
TH Real Estate will acquire a 50 percent interest in the joint venture for a price of €264.4 million ($295.8 million).
Madrid Xanadú shopping center is the retail and leisure destination for the southwest of Madrid and one of the top 10 shopping centers in Spain. The center, which opened in 2003, has an annual footfall of 13 million customer visits and an annual net rental income of €23 million ($26 million).
The two-level center provides approximately 220 retail, catering and leisure units. Tenants include El Corte Ingles, all of the Inditex fascias, Primark, H&M, Apple
and Mango. In addition, there is a strong leisure offering with SnowZone, Spain’s only indoor ski slope, a 15-screen Cinesa cinema, and Ilusiona bowling. This will be enhanced by an aquarium and Nickelodeon indoor theme park, which currently are under development.
Intu acquired Madrid Xanadú in March 2017. The firm will continue to manage the center
TH Real Estate’s ownership includes the center and the SnowZone business but excludes the management company, (50 percent of the price paid by Intu to entities of the Ivanhoé Cambridge Group) before net debt, working capital and other adjustments.