A fund established by ASG, the specialist in turnaround investments in European real estate, has sold a store leased by sporting goods retailer Decathlon on one of central Madrid’s top shopping streets to AEW’s Europe City Retail Fund for €50 million.
ASG Real Estate Fund III acquired the Mercado de Fuencarral, a 2,400 sm retail center in a prominent location on the southern stretch of Calle de Fuencarral in 2014. The fund and operating partner Talus Real Estate converted the unit so that a single occupier could use it as a flagship store, securing Decathlon as a tenant in July.
Saul Goldstein, Founder and Managing Partner of ASG, said: “Retail units offering more than 1,000 sm of space are a rarity on Fuencarral, so we were able to take an under-utilized property and reposition it. Along the way, we secured Decathlon to lease the revamped property at a rent that surpassed our projections and are now exiting this prime, stabilized institutional-quality asset to realize the gains for our investors.”
Calle de Fuencarral is a pedestrianized street off Madrid’s Gran Via and offers mainly mass-market fashion and accessories in an area that attracts one of the highest levels of footfall in the city. The are several subway stations within a 5-minute walk of the property.
ASG Iberia Advisors, CBRE and Uría Menendez advised the fund on the disposal.
ASG) is a Jersey-based real estate investment manager focused on Germany and Spain. The group was founded in 2007 by Saul Goldstein after he left Cerberus, where he held a variety of senior roles. ASG currently has five discretionary closed-end real estate funds under management with a total of approximately €1 billion of assets under management. ASG funds invest in high quality properties with significant unrealized potential, loans and private equity investments in real estate. Through hands-on asset management by its local teams, ASG repositions properties so that they generate the stable cash flows that appeal to prospective institutional buyers. ASG is regulated by the Jersey Financial Services Commission.