The value of Rodamco Europe's interest in the new total Parquesur (prior to external valuation) will be around €230 million (book value of the existing part plus development cost of the extension) and produce a net initial yield of around 6.8%. This extension strengthens Rodamco Europe's position in the Spanish retail sector. The total investment portfolio consists of 12 shopping centers and is valued around € 1 bn of which 89% is in the retail sector.
The GLA of the extension is around 44,000 m² including an open-air terrace (1,000 m²) around the new lake. In the future a garden (3,560 m²) and other smaller extensions (2,155 m²) will be added. The new GLA of Parquesur is around 151,000 m², of which Rodamco Europe owns 76,000 m² (the rest are other owner occupiers).
The extension is estimated to increase the number of visitors per annum to 24 million compared to previously 18 million and it creates (directly and indirectly) 1,800 new jobs for the region.
CEO Maarten Hulshoff: "We have worked very closely with local authorities who shared our vision for Parquesur. This shopping center, acquired in 1994, was already one of Rodamco Europe's largest. Following the €110 million investment, it is state-of-the-art, in line with our strategy of continually improving and developing the assets in our standing portfolio. The inauguration of our new Parquesur extension also reflects our firm commitment to expand our dominant position in urban catchment areas such as Madrid."
