Intu announces new joint venture for Madrid Xanadú
Shopping centre operator Intu and TH Real Estate have agreed to form a joint venture to own the Madrid Xanadú shopping centre in Spain.
Situated in the south-west of Madrid, the shopping centre is one of the top ten in Spain with an annual footfall of 13 million customer visits and a yearly net rental income of €23 million.
The two level retail mall includes retailers such as El Corte Ingles, all of the Inditex fascias, Primark, H&M, Apple and Mango. In addition, it leisure offering includes SnowZone, Spain’s only indoor ski slope, a 15 screen Cinesa cinema and Ilusiona bowling. Work is also underway to introduce an aquarium and Nickelodeon indoor theme park.
Intu acquired Madrid Xanadú in March 2017 and stated at the time that it would look to introduce an investment partner. TH Real Estate will acquire a 50% interest in the joint venture, which includes the centre and the SnowZone business but excludes the management company, for a price of €264.4 million before net debt, working capital and other adjustments.
Intu will use the net proceeds to repay debt on its revolving credit facility. The joint venture arrangements provide that intu will continue to be the manager of the centre.
David Fischel, intu chief executive, said: “We are pleased to announce our new partnership with TH Real Estate and we look forward to working together on a number of compelling active management opportunities to enhance and strengthen Madrid Xanadú’s market position and offering.”
