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Sonae Sierra and APG sell 50% of portfolio for €525M to create Sierra Prime
03 March 2020 | Vanessa Sousa

Sonae Sierra and APG sealed a deal to sell 50% of their Iberian 6 shopping centre portfolio for 525 million euro. Allianz and Elo are the new owners and will join the two companies in the creation of Sierra Prime.

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This is the latest joint venture specialised in prime shopping centres in Iberia, which will be shared in equal parts by each investor – owning each a 25% share – and it will be focused in improving and developing its current portfolio over the next 15 years.

The portfolio includes 4 assets located in Portugal over which the new joint venture has different shares. It has 50% of shopping centres Colombo and Vasco da Gama in Lisbon and also 50% of NorteShopping in Porto. The joint venture has full control of CascaiShopping.

The other two shopping centres are located in Malaga, Spain: Plaza Mayor, of which Sierra Prime owns 100% and the McArthurGlen Designer Outlet Málaga of which it has a share of 50%. This means that Sierra Prime controls 1.800 million euro of this portfolio’s gross value, whose total reaches 3.000 million euro. According to the release through which the news were advanced, the management of these assets will remain with Sonae Sierra.

«This is an historical transaction for the Iberian retail real estate market and for Sonae Sierra. We are very happy for following through with our successful long-term partnership with APG, and, at the same time enthusiastic for welcoming Allianz and Elo to Sierra Prime», commented Fernando Guedes de Oliveira, Sonae Sierra’s CEO.

Robert-Jan Foortse, from APG European Property Investments, confessed he was «very happy» with this new partnership, which should «help develop and grow these prime assets».

Jerome Berenz, who is responsible for indirect investments at Allianz Real Estate stated that he was also «very happy in building a relation with APG, Sonae Sierra and Elo, with whom we share a long-term strategic vision focused on prime assets».

For Elo’s director Timo Stenius, «the Serra Prime joint venture fits Elo’s real estate investment strategy. We are very happy with our first investment in the Iberian real estate investment market, along with referential institutional investors».

In this operation, Sonae Sierra and APG were advised by Morgan Stanley, with the co-advising of Banco Santander Totta and law firm Freshfields Bruckhaus Deringer LLP. Allianz and Elo had the support of law firm Uría Menéndez, and for matters of Dutch law, legal firm De Brauw.