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Meyer Bergman Sells Prime Building on Madrid's 'Golden Mile' to Fashion Giant Mango
Meyer Bergman, the investment manager specialised in European retail properties, has agreed to sell a former bank office located on Calle Serrano, on Madrid's "Golden Mile" , to the Spanish fashion retail giant Mango. The financial terms of the transaction are not being disclosed.
Mango made an unsolicited approach to acquire Calle Serrano 60 in the Salamanca district of the Spanish capital from Meyer Bergman European Retail Partners II (MBERP II), the London-based investment manager's second value-add fund. MBERPII purchased the vacant building, a former CaixaBank office, with the intention of repositioning it for retailers seeking to locate on the city's most prestigious luxury retail destination, while leasing the upper floors to office occupiers.
Meyer Bergman Principal Blake Loveless said: "Mango's desire to own and occupy Serrano 60 is an endorsement of the opportunity that we spotted given the property's fantastic location. To receive an approach from a major global brand like Mango, so soon after our investment, highlights just how much sentiment towards the Spanish retail market has shifted in the past year, enabling us to achieve our business objectives well ahead of schedule. We like the fundamentals of the Spanish market and are actively pursuing additional investments on behalf of MBERP II."
Serrano 60 is an 8,100 m2 building spread over six floors. The property is located between two El Corte Ingles department stores and among many luxury fashion brands. The building's retail floors offer 2,500 m2 of space, permitting Mango to showcase its fashion ranges on a luxury street where large retail units of this size are rare.
Investing in properties with a dominant market position or prime locations is the main strategic theme of MBERP II, which is making good progress in capital raising towards its €500 million target fund size, excluding leverage. Other current portfolio assets on Europe's premier shopping streets are in London, Paris, Copenhagen and Berlin.
Among its other investments, the fund owns the Whiteleys Shopping Centre in London's Bayswater District and the Karstadt department store in Berlin's Hermannplatz. MBREPII's first investment was in the Westfield Broadway shopping centre development in Bradford, northern England, construction of which commenced this year. The fund has the strong backing from existing Meyer Bergman investors, mainly North American pension funds and endowments, and has also attracted new European institutional investment.
Meyer Bergman was advised by Cushman & Wakefield, Uría Menendez, PwC, and specialist architecture firm RCCyP.