Lar España acquired Rivas Futura retail park for €61.6Mn
This acquisition is part of Lar España’s strategy to increase its exposure to retail assets in exchange for office buildings. This strategy makes a lot of sense given: 1) the higher yield of retail assets that should lead to a larger DPS; and 2) LRE’s long track record of creating additional value on retail assets.
The c.6% net initial yield is in line with the average Lar España’s net yield (5.8% 2018e BKTS). In addition, Lar España will become an undeniable leader in the retail Parks segment. It could contribute to achieve synergies with tenants that operate in other Lar España’s retail properties and to attract new tenants to Rivas Futura.
We reiterate our Buy recommendation with a target price of €10.1/share.
Lar Espana Real Estate SOCIMI SA is a Spain-based company primarily engaged in the operation of retail Real Estate Investment Trusts (REITs). The Company specializes in acquiring, managing and renting real estate assets within the Spanish market. Its business activities are divided into three segments: Shopping Centers, Offices, as well as Logistics. The Shopping Centers area is responsible for operation of a number of shopping malls, namely Txingudi, Las Huertas, Albacenter, Anec Blau, Hiper Albacenter, and Nuevo Alisal, among others. The Offices segment invests in office properties, such as Arturo Soria, Cardenal Marcelo Spinola, Egeo and Eloy Gonzalo. The Logistics division focuses on managing logistics warehouses, including Alovera I and Alovera II. The Company also owns a plot for residential properties development. It is a parent of a number of entities, such as Lar Espana Inversion Logistica SA, Gran Via Centrum Holdings SAU, Global Noctua and Puerta Maritima Ondara.
Bankinter S.A. is a Spanish brokerage firm established in 1989. The company's line of business includes the provision of market research and trading services for Equity and Fixed Income products.
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