Castellana Properties acquires shopping center for 63 million euros from DWS.
Castellana Properties, a Spanish listed company and leader in the retail real estate sector, has just announced today “the acquisition of Forum Madeira, a shopping centre located in Funchal, for a total of 63.3 million euros from DWS”, with the transaction presenting “an entry return on net operating income (NOI) of 9.5%, with the effective closing of the transaction scheduled for 30 April. Following the acquisitions recently made by the company, the portfolio value (GAV) of Castellana Properties is around 1.7 billion euros, with 21 assets, now including Forum Madeira”, it highlights in a press release.
“This operation, which represents the company’s fifth acquisition in Portugal since its entry in October 2024, reinforces Castellana Properties’ commitment to the Portuguese market and its strategy of expansion and geographic diversification with important assets in its areas of influence”, it also states, with DIÁRIO having already reported this deal a few months ago.
“Since its inauguration in 2005, Forum Madeira has established itself as the island’s main fashion destination and has a Gross Lettable Area (GLA) of 21,472 m² spread over three levels, attracting around 5.4 million visitors annually, of which more than 33% are international tourists”, he recalls.
Considering that “Forum Madeira is located in a consolidated area in terms of population, but at the same time in full development, known for its tourist attraction and the growing luxury residential market” and also because “it has an area of influence of approximately 250,000 residents, as well as 2.3 million tourists per year”, this was the business opportunity that this Spanish company could not miss.
“The shopping centre is just an eight-minute drive from the city centre and five minutes from the ER101 motorway, which connects the island from east to west. The area is being transformed with projects such as Dubai Madeira, which will be completed in 2029 with 400 luxury apartments, further reinforcing the shopping centre’s immediate influence. In addition, with a 100% occupancy rate, this asset offers a unique commercial offer in Madeira, including all the brands of the Inditex group, as well as the Pingo Doce supermarket, among other brands. It also has 800 parking spaces for its visitors”, highlights the added value.