Sonae Sierra eyes Portugal mall deals after Spain buy

Sonae Sierra and Norway’s sovereign wealth fund are preparing to assess new shopping-centre investment opportunities in the Iberian Peninsula, including Portugal, after closing a roughly €1.5 billion deal for eight malls in Spain.

The partnership, formed with Norges Bank Investment Management, has said its immediate focus is to complete the Spanish transaction announced on July 31 and prepare the commercial management of the portfolio, which will be handled by the Portuguese company. But Sonae Sierra told ECO it will review future opportunities “selectively and in a disciplined way”, based on asset quality, strategic fit and return profile.

In the Balkany family portfolio deal, Norges Bank Investment Management is taking a 92% stake for €1.4 billion, while Sierra is acquiring the remaining 8% for €120 million and will manage the shopping centres. Sonae Sierra said its role in the partnership goes beyond its minority financial stake, highlighting its origination, investment analysis and execution capabilities as relevant for identifying future opportunities across Iberia.

Once the transaction is completed, Sierra will manage 73 shopping centres in eight countries, with €8.5 billion in assets under management. In parallel, it is preparing to acquire 100% of SCCE, the company that currently manages the eight Spanish malls covered by the deal as well as 10 others owned by third parties, and to take on about 130 employees in Madrid, Barcelona and local asset teams.

Sonae Sierra told ECO that Portugal benefits from macroeconomic trends similar to those supporting the sector in Spain and offers high-quality assets with long-term value potential. The company said its existing position in Portugal, where it manages some of the country’s largest malls, gives it an advantage in identifying and analysing new deals.

Originally published at Eco.pt