Saint Croix Holding Immobilier has acquired the Sexta Avenida shopping centre in Madrid’s Moncloa-Aravaca district, for approximately six million euros as the company reported on Tuesday to the Spanish National Securities Market Commission (CNMV). Sexta Avenida is located in a growing area of Madrid that includes high-income neighborhoods such as El Plantío, La Florida, Aravaca and Valdemarín.
The Spanish REIT vehicle (Socimi), owned by the Colomer family (owners of Pryconsa), has formalised in a public deed and before the notary Jesús Roa, the acquisition of the building, located at nº2 of Avenida de la Victoria, in El Plantío, a neighbourhood belonging to the Moncloa-Aravaca district. Savills advised the vendor, ActivumSG who bought the property from Klépierre in 2016.
Specifically, the asset, until now owned by ASG Iberia (ActivumSG), has a gross leasable area (GLA) of 16,870 sq m and 423 outdoor parking spaces. Over the last 5 years, the centre has suffered from a high level of vacancy albeit currently anchored by Mercadona, a Patrick Sport sports store, an “02” wellness gym and several service stores. ActivumSG recently signed a 15-year pre-contract for a 6-room Yelmo Luxury with the goal of re-launching the food court.
Sexta Avenida’s retail offering includes includes sports, leisure, beauty, health, home and decoration, services and technology from brands such as Alain Afflelou or multi-brand providers. Additionally, there is a Mercadona hypermarket and restaurants from local franchise Vips.
The centre’s 10-minute doorstep catchment is home to over 230,000 high-income residents but the centre is in need of a refurbishment to attract these consumers and take advantage of the more than 150,000 cars a day that pass through the A-6. Additionally, the location benefits from being surrounded by a consolidated area of high-quality offices that includes the Spanish headquarters of companies such as Volvo, GE Healthcare and McDonald’s as well as Spanish company headquarters of companies like Linea Directa, Securitas, Vodafone.
Saint Croix earned 10 million euros in the first nine months of the year, 108% with respect to last year. Revenues soared 29% to 16.4 million euros. The hotel area grew by 46%, the office area by 24% and the commercial area by 33% while the industrial area fell by 8%. With this acquisition, the Spanish REIT joins various institutional investors who are present in the same area of Madrid such as Allianz, Swiss Life, Invesco, Árima and Barings.