Previous Next
Nuveen negotiates purchase of 50% of Xanadú with Intu
11 November 2019 | Vanessa Sousa

Shopping centre intu Xanadú may soon be managed exclusively by Nuveen, since the negotiations with American Intu Properties to acquire the other half of the asset are proceeding.

Foto

This negotiation is mandatory as per the so-called right of preference according to which Intu must give preference to its partner and owner of half the asset, Nuveen to acquire Intu’s 50% share.

In this process, the American company is expected to invest 290 million euro in the acquisition the other 50% share of the shopping centre. This is the amount estimated by newspaper Expansión, taking into account that the Xanadú shopping centre is currently estimated at 580 million euro.

The transaction, however, should not be concluded before the 31st of July 2020, since neither company, by contract, is allowed to sell their respective shares of the shopping centre before that date. But for British Intu Properties this is a necessary process so as to face its current 1.100 million euro debt. This is the reason why, at the moment, the British company is looking for a way to accelerate the process and overcome this contingency so as to close this operation before the 31st of July 2020.

Intu Xanadú is a key retail asset located Southeast of the Spanish capital, it has a total built area of around 120.000 sqm and it should be refurbished soon. The intervention will cost 60 million euro and should improve, in particular, the food areas and the retail spaces.

This is not the only one of the assets’ shares it owns, Intu Properties intends to trade. The sale of a 50% share in two shopping centres to Axis Retail (fund from Generali) and ECE: Puerto Venecia, in Zaragoza, and Parque Principado, in Asturias is already in its final stage. According to the same newspaper this operation is estimated at more than 400 million euro.