Lighthouse is doubling down on its growth in Western Europe by pursuing mall acquisitions in the region.
On Monday, the property group said that it had strengthened its European footprint with the acquisitions of Alcala Magna in Madrid and Espacio Mediterraneo in Cartagena, Spain.
Lighthouse acquired the 33,691m² Alcala Magna mall for €96.3m and a 36,984m² stake in Espacio Mediterraneo for €135.4m, at gross yields of 7.6% and 7.0%, respectively.
The purchases come amid intensifying competition for prime retail assets, as more property groups continue to seek opportunities in the Iberian region, attracted by its robust economic growth, the group said in its preclose operational update for the six months to end-June.
“These acquisitions reinforce Lighthouse’s strategic positioning in Spain and reflect its ability to identify and act on yield-accretive opportunities in competitive markets. However, investor interest in the Iberian region has intensified, resulting in greater competition for premium malls,” the group said.
The group said that while it remained actively engaged in evaluating new opportunities, the availability of high-quality, attractively priced assets was likely to be limited in the short to medium term.
According to Lighthouse, Spain continued to outperform the eurozone with 2025 first-quarter GDP growth of 2.8%, compared to 1.5% for the region.
The group’s overall property portfolio remained strong, with total sales up 8.6% and footfall rising 4.6% in the five months to May. This follows solid growth in the financial year ended December, when sales increased 7.8% and footfall 4.3%, supported by tenant demand, active management and favourable market conditions, it said.
Footfall growth was driven by strategic leasing and new anchor tenants, including two Primark stores and Alcampo in Spain.
Lighthouse raised R400m in June through a share issue priced just below its net asset value. The group also secured €184.6m in new debt facilities linked to recent acquisitions, pushing its loan-to-value ratio up to 35.5% from 25% at the end of 2024.
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