Banco Santander has launched a new real estate investment vehicle specialising in retail assets, with a target volume of up to €300 million, after receiving authorisation from the CNMV. The fund, called Santander Real Estate Retail Opportunities, will combine €150 million of capital and another €150 million of financing.
The vehicle will be managed by Santander Alternative Investment, the group's alternative investment platform, while asset management will be handled by Retailco, a subsidiary created by the entity in 2021 for the management, repositioning and transformation of retail-related properties.
According to the information available, the fund aims to build a portfolio of between eight and ten assets spread across Spain and Portugal, with a strategy focused on four types: shopping centres, retail parks, high street premises and retail areas integrated into mixed-use buildings. The expected duration of the vehicle is ten years.
Santander has committed €30 million from its own balance sheet as an initial investment in the fund, representing approximately 20% of the target capital. The minimum entry amount for investors has been set at €50,000, a lower threshold than usual for this type of vehicle, although it is aimed at high net worth individuals.
The launch of this fund comes at a time of increased activity for the group in the retail real estate sector, both in its financial business and through investment structures for clients. In recent months, Santander has participated in transactions involving retail assets through specific vehicles, including the acquisition of shopping centres such as Ballonti (Bilbao), Moraleja Green (Madrid), AireSur (Seville) and 50% of Xanadú (Madrid).
Santander Alternative Investment is also active in other real estate segments, such as residential, with vehicles focused on temporary accommodation and flex living projects in cities such as Madrid, Barcelona and Valencia, developed in partnership with specialist developers.
With this move, the group is setting up its first investment vehicle dedicated exclusively to the retail segment, structuring a specific strategy for this type of asset in the Iberian market.
