Intu Properties buys Madrid's Xanadu shopping centre for about €530m
Intu Properties has exchanged and completed contracts to acquire Xanadu shopping centre in Madrid, Spain, for a total cash consideration of €530m, before working capital and other adjustments.
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The deal, with entities of the Ivanhoe Cambridge Group, included Xanadu's associated management company and the SnowZone operating company.
Intu said the centre itself, excluding the management company and SnowZone business, was externally valued on 1 February 2017 at €526m, representing an initial yield for the centre of 4.3% based on annual net rental income of €23m.
The commercial property company said a €263m, five-year term loan with Santander, BBVA, Credit Agricole and Caixabank had been secured on the asset, with the all-in cost of debt estimated to be about 2.0%.
The balance of the consideration would be met from Intu’s existing resources. The acquisition is expected to be earnings accretive.
"We are looking to introduce an investment partner into Xanadu and are currently progressing discussions with potential partners," said Intu in a statement.