Redevco Iberian Ventures, a joint venture between Redevco and U.S. private equity group Ares Management, has acquired the El Corte Inglés department store in the heart of Barcelona to transform it into a highly sustainable, mixed-use prime location.
The JV project represents an estimated total investment of just over €200 million.
“Redevco and Ares have a highly successful track record of partnership in the Spanish market, and I fully expect this latest deal to match our ambitious targets for transforming the urban spaces of our cities. The Barcelona acquisition has all the elements we look for in this type of retail-anchored investment: an ultra-prime location with high footfall in a city that is a magnet for tourists, combined with the opportunity to transform the existing format into a compelling, retail-led mixed-use destination. This perfectly fits Redevco’s strategic focus on creating vibrant places in dynamic urban areas, and thereby helping cities to become more liveable and sustainable,” Israel Casanova, Redevco’s Managing Director Global Transaction Management, said.
The c.18,000 sqm El Corte Inglés building is currently operated as a sports fashion department store over nine floors and is located on the main Porta d’Angel shopping and tourist thoroughfare in Barcelona, with excellent visibility due to its two prominent and large facades.
Redevco and Ares plan to transform the asset into a ‘grade A’ building with the most ambitious targets in terms of ESG performance. The basement, ground and first floors will contain retail offerings, with office space distributed over the upper levels.