Allianz expands into Portugal with a 25 per cent stake in EUR1.8bn Sierra Prime retail portfolio

Allianz Real Estate has acquired a 25 per cent stake in Sierra Prime, a retail portfolio of prime shopping centres across Portugal and Spain. 

The new strategic joint venture combines sellers, Sonae Sierra and APG, who will each retain a 25 per cent stake with the remaining share owned by Finnish pension insurance company Elo. The deal represents Allianz Real Estate’s first investment in Portugal and further complements the firm’s focus in the region.

“This portfolio is comprised of the most-dominant shopping centres in Portugal and Spain. Portugal, in particular, is a very strong market for shopping centres due to the minor role of high street retail. This transaction offers Allianz Real Estate excellent, long-term diversification benefits at significant scale and underlines our strategic approach to expand selectively in alternative asset classes – best-in-class assets in terms of performance and location. In addition, we have a strong interest to further expand our footprint in one of Europe’s most dynamic real estate markets,” said Kari Pitkin, Head of Business Development, Allianz Real Estate.
The Sierra Prime portfolio has a very successful track record; attracting over 90 million visitors each year, its historical performance has been remarkable, even during economic crises. In addition, it holds a strong tenant base with full occupancy and it offers attractive growth opportunities through asset management.
The portfolio is composed of six prime retail shopping centres, with three located in Greater Lisbon (Centro Colombo, Centro Vasco da Gama and CascaisShopping), two in Málaga (Plaza Mayor and Designer Outlet Málaga), and one in Greater Porto (NorteShopping). In total, it encompasses 1,150 units for a total GLA of 380,000 sq m, with three of the assets currently undergoing expansion projects to be completed by 2023.
Day-to-day management of the portfolio will remain with Porto-headquartered Sonae Sierra, an investment, development and asset management firm with a global OMV of cEUR7 billion.
“The Sierra Prime portfolio underscores our commitment to working with prime partners, investors and stakeholders. We are delighted to build relationships with well-known and established stakeholders such as APG, Sonae Sierra and Elo who share our long-term, strategic approach and focus on prime assets,” says Jerome Berenz, Head of Indirect Investments, Allianz Real Estate.