On the 13th March, it was announced that Savills IM, the Investment management company has made a new acquisition. The international real estate investment manager has been made on behalf of its Europe II- Retail Fund. The acquisition is a retail warehouse that is located near San Sebastián in Spain. The deal cost €16 million and is the first acquisition for Savills Investment Management in Spain since the global financial crisis.
In order to achieve a successful acquisition of the warehouse, the investment company was advised by Focus Real Estate and Retail Partners Europe. The retail space has been acquired from a local developer. The space measures 10,300 sq. m. and already has successful Spanish brands as tenants in the space. This means that it should be a profitable acquisition for the Investment Management company. The lead tenant of the warehouse involved in the acquisition is Mercadona, which is Spain’s leading grocer. Other tenants of the pace include the DIY operator Brico Depot, these two well-known brands should mean that the warehouse should lead to a fruitful acquisition for the Europe II- Retail Fund.
The Savills IM Director in Spain, Michael Reinmuth has appeared to be positive about the recent acquisition. The location of the acquisition will also help with its success, as the warehouse is situated in prime property. The warehouse is close to San Sebastián which is located in the Basque region of Spain. The retail space is a newly built site and it has been thought that the site is already trading at a level that is higher than their expectations. This means that the new acquisition will be providing the Fund with possible future opportunities in order to improve the value of the site. The warehouse also provides a strong defensive distribution level which means it is appearing to be a very good investment by Savills IM.
