TIAA Henderson Real Estate (TH Real Estate) has secured €125 million of new debt financing on behalf of the newly acquired Islazul Shopping Center in Madrid, Spain.

The new five-year facility has been provided by ING, an existing lender for TH Real Estate, on competitive terms. Islazul is the second-largest shopping center in Madrid; the center totals 260,000 sq m with a GLA of 90,000 sq m.

The retail mix is primarily made up of fashion brands, accounting for 40% of the surface area, while leisure and restaurants occupy 28% and a hypermarket, operated by Leclerc, occupies 17.5%. The remaining surface area is occupied by services and household stores. Islazul also has 4,100 parking spaces. With an average of 10 million visitors per annum, the shopping center boasts major firms such as Primark, a number of Inditex brands, H&M, a Yelmos cinema complex, and a Media Markt home electronics store.

Colin Throssell, Head of Treasury, said: “Our existing relationships with lenders such as ING mean we are well positioned to secure extremely competitive terms for assets across our global portfolio. In this instance, the longstanding and trusted relationship in place with ING allowed this financing to be secured within an incredibly tight deadline without compromising on the investors’ needs.”

Sign up for our ACROSS Newsletter. Subscribe to ACROSS Magazine.

Investment MORE

Seeking maximum efficiency

Why Lean Management is an imperative for future-proofing our shopping centers.

Work, Live, Play: Creation of a More Diverse, Competitive Product

Just as the Covid-19 pandemic blurred the lines between office and home in 2020, the office of the future will need to combine elements of work, life, and experience in order to be competitive in post-pandemic city center locations, writes Nicole Pötsch, Head of Acquisitions & Sales for North & Central Europe at Allianz Real Estate.

Ingka Centres’ First Acquisition in the USA

The company has purchased the “6X6” building in downtown San Francisco. Following a transformation, the retail destination will be anchored by IKEA and will be complemented by mixed-use offerings.

Stricter financing conditions for retail properties

Business closures and rent losses in the coronavirus crisis have made banks even more cautious about retail properties and shopping centers. In the case of refinancing, portfolio holders have to calculate with higher interest rates and additional equity.

Ingka Centres Acquires Kings Mall in London

Following its transformation, the scheme will be the first mixed-use object in a downtown location, anchored by an IKEA city store, in the United Kingdom.

Upgrading the existing portfolio

Ingka Centres’ €7.3 billion investment to transform its business remains on track – with particular emphasis on sustainability and innovation.