Union Investment has acquired a retail park in Madrid for special fund UII EuropeanM. This, along with a high street asset in Brussels, is the first retail acquisition completed by the fund.
The On Plaza retail park near Madrid, which was built in 2019, has been acquired from local developer, Centro Comercial Constitución 102 SL, and offers 10,580 sq m of rental space with eight rental units split across a main building, a restaurant and a separate supermarket with its own parking deck. There are a total of 312 parking spaces. The property is fully let. The main tenants are supermarket chain Mercadona, DIY store Leroy Merlin, fitness studio McFit and non-food retailer Tedi.
The property is located in Torrejón, around 26 kilometres (a 30-minute journey) north-east of Madrid city centre. On Plaza retail park benefits from very good visibility and excellent accessibility thanks to its location on Avenida de la Constitución, the main thoroughfare of Torrejón de Ardoz. It is part of the metropolitan area of Madrid, one of the most important cities in the European Union.
Union Investment was advised on the acquisition of the On Plaza retail park by Savills and Hogan Lovells.
UII EuropeanM invests primarily in the four commercial use types of office, hotel, logistics and retail, focusing on midscale properties in European real estate markets. Midscale properties are mainly characterised by prices in the double-digit million range, functional and timeless architecture, and moderate rent levels with sustainable cash flow.
Photo of Verena Mulder & Juan Manuel del Río, founding partner and director of Centro Comercial Constitución 102 SL with town hall officials. Source: Torrejón Town Hall.