JSE-listed Resilient Reit and Lighthouse Properties have jointly acquired Salera Centro, a regional shopping centre in Castellon de la Plana in Spain, for €171m.
The purchase price represents an annualised net initial yield of 7.7% including transaction costs based on the 2024 forecast net operating income.
Resilient and Lighthouse Properties will each contribute €85.5m excluding transaction costs. The acquisition is a category two transaction in terms of the JSE listings requirements and does not require shareholder approval.
“The acquisition is in line with our strategy to invest in dominant and defensive retail centres in regions with strong economic fundamentals,” said the companies in separate statements on Thursday.
Salera offers 53,291m2 of gross lettable area (GLA), with weighted average net rental of €20.88/m2.
The mall, which has a 9-million annual footfall, is fully let to 147 major international and national tenants including Primark, H&M, JD Sports, FNAC, Primor, C&A and eight Inditex brands (Zara, Massimo Dutti, Lefties, Bershka, Pull&Bear, Oysho, Zara Home and Stradivarius). The entertainment offering includes a 14-screen cinema, an arcade and bowling, as well as a food court.
Resilient owns 27 retail centres in SA. Its strategy is to invest in dominant retail centres with a minimum of three anchor tenants and let predominantly to national retailers.
It holds a 40% stake in France through Retail Property Investments SAS, in partnership with Lighthouse, which owns four regional malls in France. In 2022, Resilient held a 4% stake in the London and JSE-listed property company Hammerson.
In its pre-close update on December 4, Lighthouse advised that it had entered into exclusivity to acquire a 100% stake in a shopping centre in Spain. The transaction is expected to be completed during the first quarter of 2024.
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