Hines Says Adios to Spanish Mall

As European markets improve, Hines finds a buyer for its distressed mall in Madrid.

By Alex Girda, Associate EditorZielo Shopping Pozuelo

As the European investment market is slowly improves over the last eight years, big companies such as Hines find opportunities to trade their troubled real estate in places such as Madrid.

The LEED Gold shopping center, one of the first assets of its kind to gain this type of certification, Zielo Shopping Pozuelo, developed by the Hines European Value Added Fund, has been bought for $78 million.

Development management, asset management and disposition services to HEVAF were all handled by Hines Spain, fitting the company’s business model across Europe. Exiting the recession was one of the company’s main goals with the project.

HEVAF, an entity controlled by international real estate firm Hines, was also the seller in the transaction, which was arranged by CBRE. Management services and leasing duties were also handled by CBRE for the retail property, while legal advice was provided by Ashurst.

Zielo Shopping Pozuelo offers 169,489 square feet of space and features a tenant roster with a diverse mix of upscale retailers. Sanchez Romero, Massimo Dutti, Uterque, COS and H&M are some of the names currently available at the center. The shopping center currently has just three percent vacancy.

Zielo Shopping Pozuelo is located in an area of the Spanish capital that features one of the largest per capita incomes, and has steadily increased its presence in the community since it was completed, in 2009.