TH Real Estate has acquired the hypermarket premises at L'Aljub Shopping Centre in Elche on behalf of the Southern European Value-Add (SEVA) investment vehicle, from Eroski for €18.7m. SEVA is a mandate managed by TH Real Estate for investors TPG Real Estate and Partners Group, with a focus on value-add and opportunistic investments in Southern European retail. With the addition of L’Aljub, the vehicle includes three assets across Spain and Italy with an AUM of over €300m.
The investment in L’Aljub includes the 9,900 sq m (106, 563 sq ft) hypermarket site, as well as the 4,500 sq m (48,438 sq ft) space occupied by Primark and a 200 sq m (2,152 sq ft) petrol station operated by Eroski.
TH Real Estate plans improvements to the asset. Eroski will stay on as the tenant, but the surface area of the hypermarket will be reduced to 5,100 sq m (54,896 sq ft), opening up 4,800 sq m (51, 667 sq ft) of lettable space for new operators to enhance the retail offering at the centre, which currently attracts an average of over 7 million visitors per annum.
L'Aljub Shopping Centre, which is owned by TH Real Estate, totals 43,000 sq m (462,848 sq ft) and has 100 retail units. It is home to leading fashion, leisure and restaurant brands such as H&M, Inditex, Primark and cinema group ABC. The centre is located in the city of Elche, 20km from Alicante and 50km from Murcia, placing it in a strategic position on the southern stretch of the Mediterranean Arc, an area with significant demographic and economic growth potential.
TH Real Estate comments: “We are delighted to have completed this deal and look forward to carrying out renovations that will create added value, and will help attract a new range of operators, which will substantially improve the experience of customers visiting the centre.
Source: TH Real Estate