Union Investment has entered the retail real estate segment in Portugal with the acquisition of the Continente Colombo hypermarket in Lisbon.
The hypermarket operated by food retailer Sonae MC boasts an extensive foyer featuring various service, retail and restaurant units and covers a total area of 23,445 sq m.
The acquired property forms part of the Colombo shopping centre, which opened in 1997 and is Portugal’s dominant and most frequented shopping centre with over 300 tenants.
The acquisition will be added to the portfolio of institutional open-ended real estate fund UniInstitutional European Real Estate. The parties agreed to not disclose the purchase price .
“With the acquisition of Continente Colombo, we are taking advantage of a great opportunity to further diversify our real estate portfolio in Iberia and enter the retail real estate segment in Portugal for the first time,” said Laura Roll, Investment Manager at Union Investment.
Alongside its attractive mix of uses, the Colombo shopping centre benefits from an highly frequented location directly opposite the Estádio da Luz stadium and excellent access. The shopping centre is accessible via the Segunda Circular, the main traffic artery which links the western and eastern parts of Lisbon by car. The property is also particularly well served by Lisbon’s public transport system, with direct access to the metro network and an adjacent bus terminal.
“With the acquisition of Continente Colombo we’ve succeeded in combining the two major focuses of our retail investment strategy, which constitutes of grocery-anchored retail on the one hand and on best-in-class shopping centres on the other hand. We will further continue to selectively expand our portfolio in both areas,” said Roman Müller, Senior Investment Manager at Union Investment.
Union Investment was advised by Linklaters, Cushman & Wakefield and Sonae Sierra, who will also manage the property on behalf of Union Investment. Jamestown Europe GmbH managed the disposition on behalf of a separate account of a Luxembourg pension fund and was advised by Garrigues and Arcadis.