ACROSS: Redevco recently launched its European retail parks fund. What was the purpose behind it?
Israel Casanova: We launched the fund mid last year and started acquiring assets in the third quarter. The segment has clearly demonstrated durability across many different cycles, with stable income and very attractive entry prices after the correction in the retail sector overall.
One of our advantages is that for many years we have managed a large retail park portfolio. We have seen and anticipated that trend, which is why we consider this the right moment to enter. In fact, we started acquiring assets on our own balance sheet even before launching the fund, including a large deal in the UK at the end of 2024 and further acquisitions at the beginning of 2025.
“The segment has clearly demonstrated resilience across many cycles.”
ACROSS: You focus on what you call “dominant convenience-led retail parks.” What defines such an asset, and what are the key criteria when assessing locations?
Casanova: These are assets anchored by essential retailers — such as grocery, DIY, and value-led brands that provide essential goods for the catchment. They are typically very strong within their catchment areas, highly accessible, and offer potential for ESG improvements and asset-level value creation.
When assessing locations, we look at the size of the catchment area and how the population is evolving. We consider whether it is growing or not. This segment is quite affordable, so we do not need highly affluent areas, but we do need strong consumption. We also target assets that have a dominant position in their catchment.
ACROSS: You are active across multiple European markets. Where do you currently see the most compelling opportunities, and what role does regulation play?
Casanova: We are focusing on Spain, Germany, France, the UK, and Benelux — mainly markets where we already have a presence. We want to take advantage of our expertise and knowledge of these markets.
These countries combine strong consumer fundamentals with limited new supply, and there is deep occupier demand for retail parks. Each market is at a slightly different moment in the cycle, but our local teams are able to identify the best opportunities.
Regulation is always something to consider. However, in retail it has often limited new competing supply. That supports dominant assets and helps stabilize the market, rather than acting as a constraint.
ACROSS: You’ve already deployed a significant share of the fund. What has stood out so far?
Casanova: We are deploying capital quite quickly. We have already closed around 60% of the committed funds and are under exclusivity on an additional 20%.
What has stood out positively is the ability of our local teams to identify the right assets and approach them from an underwriting perspective in a way that can drive meaningful value creation.
What is more challenging is that competition is increasing. Liquidity has returned very quickly to this market.
“Liquidity has returned quickly and competition is increasing.”
ACROSS: Investor interest in retail parks has clearly returned. What has changed? And how is the tenant mix evolving?
Casanova: Investors are very focused on income, and retail parks are clearly income-producing, defensive assets with strong cash flow. That is one of the main reasons.
The second is perception. Retail has not behaved as negatively as initially expected a few years ago, particularly with the rise of online retail. The situation has been more stable, and consumer and tenant demand have been stronger than anticipated.
At the same time, we are seeing a shift toward value retail. These locations focus on convenience and affordability, providing essential goods for their catchment. We see grocery, health, sports, and services combined, which creates a very strong asset type. This reflects that consumers are prioritizing convenience, affordability, and functional shopping.
ACROSS: Are retail parks becoming more hybrid in their role, including within omnichannel strategies?
Casanova: Retail parks are increasingly becoming a kind of infrastructure for urban development, because of the essential and sustainable solutions they provide.
They are also increasingly acting as local fulfillment hubs within omnichannel networks. Retailers use these units to deliver goods within the immediate catchment. They are ideal for click & collect and for returns, which makes them very efficient.
“This is a future-proof asset class. Adaptable, income-driven, and well-positioned for change.”
ACROSS: Where do you see the biggest opportunities going forward — both in sustainability and across markets?
Casanova: This segment is robust, adaptable, and easy to adjust to new trends. That is why we consider it a future-proof asset and why we will continue investing in it.
Retail parks also offer very practical ESG opportunities. Large rooftops are ideal for solar panels, and the buildings are simple and efficient, which supports energy improvements. There is also scope to improve land use efficiency over time.
Looking ahead, the biggest opportunity is repositioning retail parks as essential, sustainable, and multifunctional urban locations. They will increasingly become part of the urban landscape and provide very convenient solutions for people living in those areas.
Across markets, we see opportunities in all the regions we target. Southern Europe is currently more attractive from a deal perspective, while Germany offers very strong and stable income. Our pan-European strategy allows us to benefit from different cycles across markets.
About
Israel Casanova is Investment Director at Redevco and a member of the company’s Investment Committee. He joined Redevco in 2005 as Portfolio Manager for Spain & Portugal and later became Portfolio Director in 2009. In 2012, he was appointed Managing Director for the region, before taking on the role of Head of Transaction Management in 2024.
Casanova played a key role in Redevco’s first joint venture with an external mandate in 2015 and has helped lead the company’s transaction teams since 2021. In his current position, assumed in April 2024, he oversees transaction management across the business.
He holds a degree in Economics and Business Administration from the University of Seville and has completed executive development programs at IESE Business School and London Business School.
