AXA Investment Managers - Real Assets (AXA IMRA) has completed, on behalf of clients, the acquisition of the Dolce Vita Tejo shopping centre in Lisbon for €230 mln.
The asset has been acquired from US private equity firm Baupost and UK investor Eurofund Group, who are currently undertaking a redevelopment programme, aiming to reposition the centre as Portugal’s premier retail and leisure destination experience.
Eurofund and Baupost, which bought the asset in 2015 for around €170 mln, will continue to respectively act as operator and development manager for the asset until completion.
Attracting an annual footfall of 15 million, Dolce Vita Tejo is currently the second largest shopping centre in Portugal totalling 80,000 m2, spread across two floors and four adjoining levels of parking. The 274 retail units are over 90% let to a range of retail, leisure and food and beverage tenants.
The redevelopment programme, to be completed in 2019, will deliver additional lettable space and units. On completion, the scheme will provide a first-of-its-kind entertainment offering in Portugal to include a water park, virtual reality games and flight simulators, along with a theme park, totalling 5,000 m2. A site-wide refurbishment will also see additional pop-up facades, a new entrance,and improved access via a new bus stop.
Hermann Montenegro, head of asset management & development, Iberica at AXA IMRA, commented: 'This acquisition is further evidence of our confidence in the recovering Southern European retail market, while it has provided us with a unique opportunity to meaningfully enter the Portuguese capital.'