TIAA-CREF has taken a 50% stake in a Spanish outlet mall scheme.
bought the stake in Barcelona scheme, Viladecans The Style Outlets, for TIAA-CREF.
The holding was sold by , with which the US investor entered a joint venture .
TIAA-CREF and Neinver are targeting European outlet malls in the former鈥檚 first move into the outlet retail sub-sector.
The partnership has this year acquired a 50% stake in The Style Outlets in Roppenheim, France, in addition to buying the Factory Outlet Annopol in Warsaw and a similar asset in Futura Park, Krakow.
Phase 1 of the Barcelona scheme is scheduled for completion next year.
Jamie Acheson, investment manager for European outlet malls at TH Real Estate, said Spain had undergone 鈥渃onsiderable economic reforms鈥� that put it in a good position to continue outperforming the euro-zone over the medium term.
鈥淢adrid and Barcelona are leading the national recovery,鈥� he said.
鈥淭his has been reflected in soaring liquidity levels in the retail investment market. Combined with a tight planning regime for retail space and highly favourable catchment income demographics, this scheme will deliver attractive returns.鈥�
TIAA-CREF and Sweden鈥檚 AP1 and AP2 pooled their European real estate portfolios to create a 鈧�4bn joint venture.
The Swedish buffer funds are seeding the new entity with six properties managed by Cityhold Property, a wholly owned subsidiary of the two funds, while the US financial services provider will contribute nine properties currently part of its general account.
The 鈧�2.2bn portfolio, consisting of offices in London, Paris, Munich and Hamburg, will be renamed Cityhold Office Partnership and managed by TIAA-CREF subsidiary TH Real Estate.
TIAA-CREF is taking a 50% stake in the portfolio, while the buffer funds will hold 25% each.
