Spanish high streets continue to attract institutional investment and the latest transaction has been Ores’ purchase of a 724m² retail unit let to Stradivarius in the city of Burgos (on Calle Moneda, 13).
The property has traded for €5.25 million and the deal was financed with the REIT’s own financial resources. In addition, Ores is said to be finalising the acquisition of a supermarket for €6.75 million.
Led by Vitor Freitas Duarte, ORES Socimi completed its IPO in February of 2017 with the objective of creating a portfolio of commercial property assets in Spain and Portugal combining the experience of Bankinter bank and Sonae Sierra. The fund will distribute its next dividend in November 2019.
As at the 31st of January 2019, Ores had completed the acquisition of 34 assets and invested a total of €358 million in a diversified pool of properties in terms of type, size and location of assets, with a WAULT exceeding 30 years and WAULB of 12 years. The portfolio is almost fully let.
According to the latest report for Q4 of 2019, the portfolio has a rent of c. 21.1 million with a gross initial yield of 5.9% generated by properties in over 20 main towns and cities in Spain and Portugal including hypermarkets, supermarkets, retail warehouses, high street units let to tenants like Continente, Mercadona, Inditex, Media Markt, Mango, amongst others. Over 30.5% of the rents are from properties located in Lisbon and Madrid and an additional 20.4% is from assets in La Rioja and the Basque Region including the sale & leaseback Eroski hypermarket portfolio it acquired during 2018.
During the last 4 months of 2018, the REIT completed 4 investments with a total value of € 27.5 million. Specifically, these were the purchase of 2 supermarkets let to Mercadona and Día in Humanes and Getafe (Madrid), a retail warehouse leased to Conforama in Santander and a high street unit in the city of Vigo let to Mango.
Sonae Sierra is property manager of the Spanish REIT, bringing over 25 years of experience in the field and a current portfolio of 81 shopping centres with a total GLA of 2.3 million m2, 45 of which are owned by them, with a value of 6 billion euros.
ORES has published a full unaudited report for Q4 of 2019 is available in Spanish here.