El Corte Inglés continues its disinvestment strategy by selling its department store in Portal de l’Angel, the heart of Barcelona. Redevco Iberian Ventures, a joint venture by Redevco and U.S private equity group Ares Management, acquired the asset for an estimated €200m to transform it into a highly sustainable, mixed-use prime location.
The 18,000m2 building is currently operated as a sports fashion department store over nine floors and is located on the avenue Portal de l’Angel, one of the most popular shopping and touristic areas in Barcelona, with excellent visibility due to its two prominent and large facades.
The €200m investment will be destined to both the acquisition and refurbishment of the building. Redevco and Ares plan to transform the asset into a ‘grade A’ building with the ‘most ambitious targets in terms of ESG performance’ as described by their press release. The basement, ground and first floors will contain retail offerings, with office space distributed over the upper levels.
Israel Casanova, Redevco’s Managing Director Global Transaction Management, said: “Redevco and Ares have a highly successful track record of partnership in the Spanish market, and I fully expect this latest deal to match our ambitious targets for transforming the urban spaces of our cities.”
“The Barcelona acquisition has all the elements we look for in this type of retail-anchored investment: an ultra-prime location with high footfall in a city that is a magnet for tourists, combined with the opportunity to transform the existing format into a compelling, retail-led mixed-use destination.”
The Dutch real estate firm Redevco and the American fund Ares Management have been investing in Spain since 2015 through their vehicle. Notable investments include 70% of the retail park Parque Corredor in 2018 and the acquisition of the Mercado de San Miguel in Madrid in 2017.
El Corte Inglés, on their side, continue to disinvest assets they have deemed no longer strategic with the aim of receiving between 600 and 800 million euros. The department store group closed 16 of them between 2021 and 2022 and plan to sell additional centers. Portal de l’Angel has been one of the most important sales in the portfolio in terms of volume. Other assets in the group which are pending to be sold include a building in Puerta del Sol and the renowned Torre Titania, both in Madrid.
The transaction involved consultancy firm JLL and law firm Pérez Llorca, who advised Redevco Iberian Ventures, whilst Cushman & Wakefield and Cuatrecasas advised El Corte Inglés.