Commerz Real has successfully divested the Forum Algarve shopping centre from the portfolio of its open-ended real estate fund Hausinvest. The buyer is the Spanish investment boutique Alfana Investment Management. The sale price for the property amounted to approximately EUR 130 million.
Mario Schüttauf, Managing Director of Commerz Real Investmentgesellschaft and fund manager for Hausinvest, commented on the transaction. He emphasised that the property's long-term appreciation and the consistently high demand in the real estate market were utilised to achieve a favourable outcome for investors.
The original market value of Forum Algarve immediately after its acquisition was around EUR 75 million. This represents an increase in value of approximately 73 per cent up to the current time of sale. The asset was thus held in the fund's portfolio for over 25 years.
Property and Location
Opened in 2001, the shopping centre is situated on the north-western outskirts of Faro, the capital of the Algarve region. The total rental area is approximately 27,400 square metres, spread across 115 shops. Occupancy is almost complete, with international retail companies such as Zara and Mango as main tenants.
Commerz Real had already acquired the property in 2000 during the project development phase for Hausinvest. In subsequent years, the areas were successively expanded and optimised to meet market demands. Forum Algarve currently attracts around seven million visitors annually.
Advisory Partners for the Transaction
- —Ambas Real Estate advised Commerz Real on the transaction.
- —Legal advice was provided by Cuatrecasas.
- —Pricewaterhouse Coopers was engaged for tax matters.
- —PKF Portugal provided support with financial and accounting issues.
