Castellana Properties Socimi S A : sells Mejostilla Retail Park in Cáceres to Iroko Zen for close to €9 million

• The park has a total area of 7,317 sqm and sits within a catchment area of more than 130,000 people

• Tenants include big-name brands such as Aldi, Burger King and Sprinter

• The seller was advised by the international real estate consultancy, JLL

Castellana Properties, the listed specialist retail real estate firm, has finalised the sale of the Mejostilla Retail Park in Cáceres to Iroko Zen: an SCPI (Société Civile de Placement Inmobilier) that works with Iremcap, now Korzo Investment Management, as its operating partner in Spain and Portugal. Iroko Zen paid close to €9 million for the park, following a structured sales process overseen by international real estate consultants JLL.

The 7,317 sqm site comprises seven standalone retail units, 225 parking spaces and an electric vehicle charging point. It offers a balanced mix of tenants including major supermarkets, chain restaurants and fashion and electronics retailers - and counts Aldi, Burger King, Sprinter, Merkal and Electrocash as some of its biggest brands.

In keeping with the rest of Castellana Properties' portfolio, Mejostilla is highly profitable: its principal tenants have been in place since it first opened in 2008, and its occupancy rate has not dropped below 100%. Over time, various retailers have taken on additional space within the park, consolidating its appeal to local shoppers and the success it has enjoyed since entering Castellana Properties' ownership in 2017. Castellana Properties has gained widespread recognition as Spain's top-performing commercial property firm, recording market-leading occupancy and collection rates for the third consecutive year (98.9%, considered full occupancy, and 99.3%, respectively).

Mejostilla is situated in the north of the city, in the neighbourhood of the same name. It is part of a well-established residential area with good transport links to the city centre and outlying towns, giving it a catchment area of more than 130,000 people. Mejostilla is the only retail park within the city of Cáceres.

For Augusto Lobo, Director of Retail Capital Markets at JLL Spain: "This sale demonstrates the growing interest in retail parks among international investors, who are beginning to look beyond Madrid and Barcelona and tend to lean towards high-performing assets with a commanding position in their markets. JLL's extensive market knowledge enabled us to coordinate a competitive sales process involving multiple potential investors, particularly SCPIs - all highly liquid and strongly motivated to take a position in this segment".

Alfonso Brunet, CEO of Castellana Properties, commented: "At Castellana Properties, we are immensely proud of the success story that Mejostilla Retail Park has become since we acquired the site in 2017. The excellent trading figures we see today, such as a 100% occupancy rate, are a true testament to the hard work and vision of our team. We recently came to the decision that the most beneficial course of action for Castellana Properties would be to realise the value uplift created, allowing us to focus on new opportunities to add value to our portfolio".

Guillaume Sainpy, Co-managing Director of Iremcap (Korzo IM), added: "Retail Parks are a perfect fit for French SCPIs, offering an attractive ROI, a stable source of long-term income and an opportunity to diversify their investment portfolios. These locations are extremely popular with retailers seeking to optimise costs and gain a foothold in catchment areas of 60,000 people or more. Our investment strategy is particularly focused on assets in this segment with the stature to dominate their markets and present a compelling retail offer".