Alpha Real Trust Ltd on Friday noted the sale of CBRE H2O Rivas’s H2O shopping centre in Madrid for €111 million, plus a capex of €10 million.
Alpha Real, a Guernsey-based property-finance investor, has a 30% stake in CBRE Rivas, a joint venture with CBRE Investment Management.
Alpha Real said the price represents an annualised net initial yield of 7.5%.
The shopping centre was bought by Mauritius-based property investor, Lighthouse Properties PLC’s unit, Lighthouse Spanish Properties SOCIMI SAU.
Yesterday, Lighthouse reported that the deal depends on the handover of units to key tenants, and its effective date is no later than July 31. Lighthouse notes the acquisition of the shopping centre, which is in Rivas-Vaciamadrid, will increase its presence in Iberia, which already represents 66% of the value of Lighthouse’s directly held properties.
CBRE H2O Rivas owns three special purpose vehicles that hold full title to H2O, the concession area surrounding H2O, and a vacant plot of land detached from H2O.
Alpha Real Joint Fund Manager Gordon Smith said: ‘Since its acquisition by the company, H2O has undergone a significant operational and commercial enhancement. The company’s targeted capital expenditure has focussed on projects capable of delivering an identifiable return on investment, delivering an enlarged leasable area and upgraded tenant mix. The sale of H2O represents an opportunity for the Company to recycle capital into its broader investment strategy.’
Shares in Alpha Real fell 4.8% to 133.75 pence each in London on Friday morning.
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