Temprano Capital Partners has sold Focus Retail Park, Vila Nova de Gaia, Porto, to Belgian based retail park specialist Mitiska REIM.
Temprano Capital Partners bought the 8,400 sqm retail park in 2015 and implemented an active management strategy which included the leasing of the vacant space, regearing leases and receiving outline planning permission for an extension.
With improving investor sentiment for Portugal and the retail park 100% let, Temprano saw an opportunity to recycle capital into its development and opportunistic retail repositioning programmes.
Porto enero de 2018. TEMPRANO CAPITAL PARTNERS developer and investor in the Iberian market, has announced the sale of Focus Park, one of its assets in the retail sector located in Porto. Focus Park has been sold to Mitiska REIM, a leading specialist investor in European retail parks, based in in Brussels, Belgium.
Focus Park is an 8,400m2 hypermarket-anchored neighbourhood retail park in Vila Nova de Gaia, within the Porto district of Portugal.
When Temprano purchased the asset in 2015 over 70 percent of rental income was secured on a 14-year unexpired lease with Jumbo (Auchan). Since acquisition Temprano Capital Partners has re-geared leases, leased the vacant space, secured outline planning permission to increase GLA and secured debt financing. As a result during its ownership, occupancy increased to 100 percent and NOI increased by 39 percent.
Commenting on the sale, Timothy Young said “When we acquired the asset at the end of 2015 there was still considerable investor uncertainty regarding Portugal. Over the period of our ownership we have been fortunate to benefit from an improving occupier market, allowing us to improve and secure the income profile of the existing asset. During 2017 improving investor sentiment towards Portugal made a sale attractive. Receipt of the outline planning permission for the extension further reinforced this, leaving good upside potential for the next owner.”
Commenting on the acquisition, Axel Despriet, CEO of Mitiska REIM, comments: “We are delighted to have entered Portugal, a market where we are now seeing good momentum in respect to both the economic cycle and real estate market. In the aftermath of the economic crisis, a number of retailers and investors held back from Portugal. We are now seeing precisely the opposite trend, with real estate transactions at near record highs, and retailers and investors flowing back in, drawn by the improved economic environment and attractive risk/return opportunities.”
Temprano Capital Partners develops and executes strategies aimed at creating and delivering value. In doing so, it works to create environments that enhance the communities where their projects are located. They continuously look for new opportunities in Spain and Portugal.
The seller was advised by the Lisbon office of RPE.
TEMPRANO CAPITAL PARTNERS
WEB : www.tempranocp.com
Address: Calle Lagasca 105 1º Derecha 28006 Madrid
TEMPRANO CAPITAL PARTNERS