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Credit: Hines

Hines secures leasing of flagship retail store in Madrid

Hines has fully leased the retail space at its prime Calle Preciados 13 development in the heart of Madrid.

Leading international fashion brand Bershka, part of the Inditex Group and one of the world’s largest fashion retailers, has agreed to lease 2,700 square metres across the Preciados 13 building as well as the ground floor, basement and first floor of the adjacent building, Maestro Victoria 5. Both Preciados 13 and Maestro Victoria 5 are owned by Bayerische Versorgungskammer (BVK).

The two adjacent buildings are located on Calle Preciados, the premier pedestrian street in Madrid which is recognised as one of Europe’s leading shopping destinations.

Hines acquired the asset in 2017 on behalf of the BVK account which targets prime high street retail assets across Europe and today comprises 8 assets and €1.1bn of assets under management. BVK is Germany’s largest pension scheme group with approximately €81.7 billion assets under management.

A major refurbishment programme joining both buildings with a total CapEx investment of more than €12 million has delivered a prime upgrade of the retail space, in addition to the development of a Spanish boutique hotel, Chic & Basic, with 51 bedrooms and an adjoining food and beverage offer on the ground floor.

This transaction represents Hines’ third landmark retail leasing deal in Spain over the last 18 months. In Barcelona, Nike has been secured as a new tenant at its Paseo de Gracia 17 development, also part of the European mandate with BVK, and Grupo Galceran will install the first GAP store in Spain alongside Levi’s taking-up residence at Carrer dels Arcs 10, part of the Hines European Core Fund portfolio.

Vanessa Gelado, Managing Director and Country Head for Spain, at Hines, said: “We are really pleased to have secured another leading international brand at one of our flagship retail assets.  Aimed at a young target market with a reputation for sustainable fashion and its concept of experience-driven stores, Bershka is the perfect brand for Calle Preciados 13. We are already looking forward to welcoming them back to Madrid’s major high street and to the store opening in the coming months.”