Hines Claims Prime Retail Prize in Barcelona
- Jan 21, 2016
By Ioana Neamt, Associate Editor
Barcelona, Spain—Real estate giant Hines has expanded its European portfolio this month with the acquisition of a prime retail property in the city of Barcelona.
The Houston-based company shelled out $41.6 million for Arcs 10, a 12,916-square-foot retail asset in the heart of the city’s Gothic Quarter. Located on Calle Arcs, adjacent to Portal de l’Angel and nearby the Cathedral and Plaza Sant Jaume, the building is leased to Barcelona-based international fashion retailer Desigual. The company emerged in Ibiza back in 1984 and is currently present in 42 countries around the world. One of the largest fashion retailers in Europe, Desigual has been based at Arcs 10 since 2007. The building is also home to the four-star Hotel Catalonia Catedral.
Hines purchased the upscale asset from a private Spanish investor, on behalf of its Pan-European Core Fund (HCEF)—a Euro-dominated, Luxembourg-based investment fund established in 2007. Managed by the Hines group, the fund aims to develop an extensive portfolio of commercial real estate assets across Europe.
“With the acceleration of economic growth, take off of retail sales and consequent performance of the High Street, Spain is an attractive market, where tenant activity is seen to be strongly improving, for both existing retailers in the market, and newcomers seeking to make a presence,” said Jamie Rea, managing director for Hines España.
As part of its Europe expansion, Hines entered the Spanish market with an investment in 84 acres of land in downtown Barcelona in 1996. That investment, fronting onto the Mediterranean Sea, is now known as Diagonal Mar, one of Europe’s largest mixed-use developments, totaling more than 4 million square feet. The project consists of a 941,500-square-foot retail and leisure center, which opened in November 2001, five residential phases totaling 1,400 apartments, three hotels, three office buildings and the third-largest public park in Barcelona. Hines expanded its Spain operations in 2000 by opening the Madrid office and in 2004 with its Marbella office Today, Hines España has more 30 employees.