The English Court has decided to cancel the transfer of two jewels in its real estate portfolio: the Titania Tower and a store in Puerta del Sol, both in Madrid. The department-store group, chaired by Marta Álvarez, made the decision following the success of its plan to sell non-strategic real estate investments, which launched earlier this year and is the largest to date, with more than a dozen properties sold.
El Corte Inglés commissioned the consultation great advisors: CBRE, JLL, Cushman & Wakefield, Colliers, Knight Frank, BNP Paribas Real Estate and Savills. The Distributor believes that the objectives set have been met and its expectations have been enhanced by the signed transfers that have enabled it enter around 500 million euros, as sources from El Corte Inglés confirm. For this reason, she has decided to cancel the sale of Titania and Puerta del Sol, despite the advanced stage and after receiving juicy offers.
In the case of the building known as Titania (officially Torre Azca), El Corte Inglés asked around 230 million to accept the sale. Sources familiar with the proceedings indicate that it has received bids higher than that figure, by up to 240 million. In this process, CBRE was the broker responsible for the process.
Located in the Azca district, this tower shares space with the Nuevos Ministerios shopping center. El Corte Inglés built this estate on the site of the Windsor building that burned down. He is currently renting it out to the auditing and consulting firm EY.
Even more advanced was the sale of number 10 from sun gate to a family office of Mexican origin for 140 million, in a process entrusted to JLL as broker. Despite this price being very satisfactory for the seller, El Corte Inglés has decided not to transfer it, according to sources familiar with the asset.
Located in the most commercial area of Madrid, on the corner of Calle Preciados, this store currently contains a four-storey store in the sports department of El Corte Inglés.
The group considers the sale of the other non-strategic properties for which it put that $500 million a success. The most relevant operation was the one completed in October, which saw the sale of the Portal de l’Ángel store in Barcelona for around 200 million. This place on Barcelona’s most commercial street is also a department store chain sports shop. The buyers of this property were the funds Ares and Redevcoin a transaction advised by Cushman & Wakefield.
RFEF headquarters
As part of this sales process, the insurers Mapfre and Swiss Life acquired the property at Calle Alberto Bosch 13, the former headquarters of the Royal Spanish Football Federation (RFEF), from the department store chain in September. The property, located in the Los Jerónimos area of Madrid, a few meters from El Retiro Park, is being renovated by the new owners.
On the same dates it sold the Serantes building in Azca for 11 million to Merlin Properties, a key location for the Sozimi, home to the adjoining Sollube, which is currently undergoing renovation. The agent in this case was BNP Paribas Real Estate.
Another Socimi, Inbest, took over two former El Corte Inglés stores in Seville and Córdoba (with Knight Frank as advisor). about 50 million. In Madrid, next to Puerta del Sol, Cortina Koplowitz bought another store for about 12 million, specifically located on Calle Maestro Victoria.
For its part, Socimi Saint Croix acquired two office buildings in Madrid, on Avenida de Cantabria and Calle Santiago de Compostela, for around 45 million.
In addition, the group has added other smaller operations to this portfolio. On Arapiles Street in Madrid, it came out of a supermarket in a transaction advised by Savills. In Malaga, he transferred the so-called Gaybo building next to Vialia for 12 million.
Department stores account for 86% of the value of their portfolio
Although El Corte Inglés’ real estate portfolio consists of all types of assets, those in which its department stores and hypermarkets are located make up most of its value. 86% to be exact, according to the reports commissioned by JLL, Savills and Tinsa. The entire portfolio was valued at 16,076.9 million as of February 28 this year, ahead of divestments signed during the year. Of this, around 13,800 million was accounted for by its shopping centers, which in turn accounted for 80% of the built-up area owned by the group with 8.14 million square meters. The assets associated with offices were worth around 950 million, with another 700 accounted for by warehouse and logistics space and 620 by other types of business premises.
Although the group has decoupled this divestment plan from its debt reduction goals, the 500 million received represents a significant injection of cash at a time of sharply rising money prices due to rising interest rates. Current debt is around 2,500 million, the lowest level in 15 years.