Major retail transaction highlights continued investor interest in Spanish commercial real estate.
Unibail-Rodamco-Westfield (URW) has finalized the sale of the Bonaire Shopping Centre in Valencia, Spain, to Castellana Properties for €305 million. This deal marks one of the most significant retail transactions in the Spanish market, reinforcing the ongoing investor interest in prime retail assets.
A Strategic Move by URW
The sale is part of URW’s broader strategy to streamline its portfolio and reduce its debt. By offloading non-core assets, URW aims to focus on high-performing shopping destinations across Europe and the U.S. The transaction aligns with its ongoing efforts to enhance liquidity and strengthen its financial position.
Castellana Expands Retail Footprint
For Castellana Properties, acquiring Bonaire represents a strategic investment to expand its retail portfolio in Spain. The company, a subsidiary of South African investment group Vukile Property Fund, has been actively increasing its presence in the Spanish retail sector, betting on the resilience of well-located shopping centres.
Bonaire Shopping Centre is a leading retail destination in Valencia, boasting a strong mix of international and domestic brands, a solid footfall, and a prime location near major transport links. The acquisition aligns with Castellana’s strategy to invest in high-quality retail assets with stable cash flows.
Retail Market Resilience
Despite global challenges in the retail sector, prime shopping centres in strong locations continue to attract institutional capital. Investors like Castellana see opportunities in well-performing assets, particularly in markets with a robust consumer base and economic growth.
With this acquisition, Castellana further cements its position as one of Spain’s leading retail property owners, while URW continues to optimize its asset base to navigate an evolving market landscape.
