As advanced by SpanishReit.com, Unibail-Rodamco-Westfield (ASX:URW) has formalised the sale of 4 shopping centres located in the cities of Seville, Valladolid, Badajoz and Cadiz to Castellana Properties, Vukile’s 98% owned Spanish REIT. The volume of the transaction amounts to €489 representing a net initial yield of 5.6% according to French news source Business Immo.
According to Laurence Rapp, Vukile‘s CEO, the diversified real estate group expects to more than double its exposure to Spain with this acquisition and consolidate its position as the only South African property company invested in Europe’s fourth-largest economy. The REIT’s Spanish portfolio will be worth close to €900M this transaction is completed.
Following this transaction, URW’s Spanish portfolio consists of 6 Flagship shopping destinations, such as La Maquinista (Barcelona), La Vaguada and Parquesur (both in Madrid), two regional shopping centres and a number of development projects with an expected cost at completion of €800M, including a greenfield shopping centre project in Benidorm (near Alicante) and the extension of Garbera Shopping Centre (San Sebastián).