This historic and emblematic building of El Corte Inglés del Portal de l’Àngel in Barcelona was purchased by the real estate investment firm Redevco Iberian Ventures and one of the Ares funds.
Redevco Iberian Ventures is one of the largest alliances of real estate investment companies in Europe.
The sale was made for more than 200 million euros. It includes the purchase of the asset and the refurbishment, since the purpose of the new owners is for the building to be used for commercial and office purposes.
The sale was motivated by the fact that the Portal del Ángel center, aimed at a young segment with fashion, audiovisual, accessories and sports products, was not offering the profitability projected by the company. For this reason it was sold.
What is the future of the El Corte Inglés building in Portal de l’Àngel?
Redevco is looking for the property they have just acquired to have a dual function: it will have several floors dedicated to retail and others to offices. What has not yet been determined is whether El Corte Inglés products will disappear from the building altogether. It appears that it will remain as a tenant of the property for another year.
The new owners described the purchase as “an attractive investment opportunity thanks to the property’s excellent location,” which will serve to revitalize this historic building on one of Europe’s most popular shopping streets.
In fact, Portal del Angel is the most expensive shopping street in Spain to invest in. Rents in the area reach 3,420 euros per square meter.
In addition, this street also ranks 14th on the world’s list of most expensive streets, according to the study by the real estate consulting firm Cushman & Wakefield. The first place goes to Causeway Bay Road in Hong Kong.
During 2021 the Angel Portal received 4.5 million visitors. It is estimated that by 2022 there will be 8 million.
Similar operations in the past
This recent sale of El Corte Inglés del Portal de l’Àngel, brings to mind a similar operation the company carried out in 2019 when it sold its building in Francesc Macià. However, this shopping center did not disappear for good until 2021.
This 2019 sale and the current sale of Portal de l’Àngel are part of a reformulation operation by El Corte Inglés to keep operating only those buildings that are 100% profitable.
The sold building has about 20,000 square meters of floor space and is known as Casa Jorba, because years ago it housed a branch of the family company Magatzems Jorba.
The construction was inspired by the French architecture of the time. It was also the first commercial premises in Spain where escalators were installed.
By 1963 the building became the property of Galerías Preciados. Then in 1995 it was bought by El Corte Inglés until 1998 when it opened to the public.
