Lighthouse Properties has closed its deal to acquire the Alegro Montijo shopping centre, in Lisbon, Portugal, for €177.8 million.
The 45,469 square meter Gross Lettable Area shopping centre is in Montijo, in the Greater Lisbon Metropolitan area. Major tenants include Zara, Primark, and a Continente Hypermarket.
The acquisition, structured as a share purchase agreement with Tiekenveen Holding B.V., involved the entire issued share capital and shareholder claims in Alegro Montijo – Gestão de Centro Comercial, Sociedade Unipessoal, Lda., which indirectly owns the property.
The property has been acquired at a net initial yield of 7.2%. A new loan of up to €83.5 million has been implemented by a consortium of lenders to OpCo and its wholly-owned property subsidiary.
This seven-year senior loan has been secured at a margin of 2.0% and the variable Euribor base rate has been fixed for seven years at 2.48%. The cash-on-cash yield (net of finance costs and tax) is anticipated to be approximately 9.8%.
With the conclusion of the loan, the condition precedent to this transaction has been fulfilled and the transaction closed.
Since conclusion of the share purchase and sale agreement the Mall has continued its strong performance with footfall growing by 9.6% for August 2024 compared to the same period in 2023.
Primark is finalising its tenant installation and is scheduled to open for trade during October 2024.
The due diligence process and negotiations relating to the acquisition of a further mall in Iberia are progressing well, and Lighthouse Properties anticipates signing an agreement by the end of September 2024, with closing expected to occur during October 2024.
