Intu and TH Real Estate form joint venture

Intu has announced that it is partnering with TH Real Estate, on behalf of its pan-European investment vehicle, the European Cities Fund, to form a joint venture for the newly acquired Madrid Xanadú shopping centre in Spain.

Intu acquired Madrid Xanadú in March 2017 stating at the time that it would look to introduce an investment partner and it has been confirmed that TH Real Estate will acquire a 50 percent interest in the joint venture, which includes the centre and the SnowZone business but excludes the management company, for a price of 264.4 million euros, which equals 50 percent of the price paid by Intu to entities of the Ivanhoé Cambridge Group before net debt, working capital and other adjustments.

David Fischel, Intu chief executive, said: “We are pleased to announce our new partnership with TH Real Estate and we look forward to working together on a number of compelling active management opportunities to enhance and strengthen Madrid Xanadú’s market position and offering.”

Madrid Xanadú shopping centre is the retail and leisure destination for the south-west of Madrid and one of the top ten shopping centres in Spain. The centre, which opened in 2003, has an annual footfall of 13 million customer visits and an annual net rental income of 23 million euros.

The centre has around 220 retail, catering and leisure units, including key retailers such as El Corte Ingles, all of the Inditex fascias, Primark, H&M, Apple and Mango. In addition there is a strong leisure offering with SnowZone, Spain’s only indoor ski slope, a 15-screen Cinesa cinema and Ilusiona bowling. This will be enhanced by an aquarium and Nickelodeon indoor theme park which are currently under development.