Intu Properties Plc, the U.K.’s biggest shopping-center owner, agreed to buy a mall in northern Spain for 162 million euros ($220 million) in a venture with Canada Pension Plan Investment Board to grow its business in continental Europe.
The partners will seek bank financing for about 50 percent of the value of the 75,000-square-meter (807,000-square-foot) center in Oviedo, Spain, they said in a statement today.
“The opportunity to acquire Parque Principado, a top 10 center in Spain, on attractive and earnings-accretive terms firmly establishes our presence on the ground in a country where we see considerable growth opportunities,” Chief Executive Officer David Fischel said in the statement.
Intu, based in London, said it may set up a special-purpose vehicle such as a real estate investment trust for its Spanish holdings. The company plans to invest 1 billion pounds to expand and refurbish its U.K. malls over the next 10 years.
Intu shareholders approved the purchase of an option to acquire land in Malaga, Spain, from units of the Manchester, England-based Peel Group earlier this year. Intu also has options along with a partner to buy sites in Valencia and Vigo.
Cushman & Wakefield Inc. acted on behalf of the co-investors in the purchase, according to the statement.