Indotek Group, the Budapest-headquartered pan-European property investment and asset management conglomerate, proudly announces the 50 million EUR acquisition of Espacio León, a leading regional shopping center in the Castilla y León region of Spain. This strategic acquisition reinforces Indotek Group’s commitment to expanding its footprint in the Spanish commercial real estate market. Aging Southern European retail real estate offers Indotek massive business perspectives to export the proven turnaround model it tested and perfected in its Central European markets.
Espacio León, a freehold property, boasts 112 retail units, 1,277 parking spaces, and a gross leasable area (GLA) of 36,914 square meters. Opened in 2004 and renovated in 2018, the center is a critical retail hub for the region, drawing approximately 4.1 million visitors annually. With a current occupancy rate of 95%, Espacio León features a well-balanced tenant mix that includes leading international and national brands, a wide range of food and beverage options, and robust leisure offerings such as a nine-screen cinema. The center has a weighted average unexpired lease term of over 7 years, demonstrating its stability and appeal to retailers.
Zsolt Kertai, Head of International Retail at Indotek Group, commented, “Espacio León’s resilience and strong performance metrics make it an ideal addition to our portfolio. Our investment aims to enhance the shopping experience further, ensuring it remains a premier destination for consumers in the region.”
Miguel Santandreu, Country Head of Indotek Group’s Spanish operations, added, “This acquisition underscores our strategic focus on high-potential assets in Spain. Espacio León is a testament to our commitment to growth and value creation in the Iberian market.”
Located in the northwest of Spain, León is one of the main cities in the Castilla y León region. With 120,000 inhabitants in the city and 200,000 within the metropolitan area, the city is a vital commercial and educational hub, attracting over 2.5 million tourists annually due to its historical and cultural heritage. The city’s robust infrastructure, including a high-speed train connection to Madrid, enhances its appeal as a prime location for retail and business investments.
The Spanish retail market is characterized by a diverse range of shopping centers and a growing demand for high-quality retail spaces. Spain’s economic stability and increasing household incomes have fueled retail spending, making it an attractive market for international investors. Indotek Group’s acquisition of Espacio León aligns with the company’s strategy to invest in retail assets that offer strong growth potential and opportunities for value creation. Espacio León’s potent tenant mix, which includes international fashion retailers such as Primark, Cortefiel, Forum Sport, Mango, Bershka and Pull&Bear, a wide range of food and beverage options, and robust leisure offerings such as a nine-screen cinema and Lego Fan Factory, highlights its regional dominance and resilience.
Spain’s premier commercial bank, Banco Santander, financed the 50 million EUR acquisition. Indotek Group CFO Bence Nádasdy commented that Spain’s largest lender has already financed several hotel acquisitions by Indotek in the Iberian peninsula, but the Espacio Leon deal marks the first direct financing deal in the Spanish commercial real estate sector.
Indotek is active in the Spanish market across multiple sectors and is seeking partnerships with renowned financial institutions. Recently, the company concluded its first financing transaction with Banco Sabadell for the Ibersol Sorra d’Or Hotel in Malgrat de Mar. The multi-million euro transaction refinanced the hotel, facilitating Indotek’s ongoing expansion in Spain.
According to Zsolt Kertai, Indotek Group is actively looking at both the Spanish hospitality and retail markets with further investments in mind. The group’s turnaround model focuses on revitalizing aging properties through strategic acquisitions, focused CAPEX, tenant mix enhancement, and the introduction of sustainable practices.
Indotek’s successful strategy has been demonstrated through its expansion across Spain, including acquisitions such as Pueblo Bonaire Factory Outlet Centre in Aldaia (Valencia) and Vilamarina Shopping Center in Viladecans (Barcelona) in 2023. These acquisitions highlight Indotek’s commitment to broadening its presence in the Iberian market.
Indotek Group’s ongoing expansion in multiple markets, including Hungary, Poland, Romania, Greece, and Italy, reflects its dedication to diversifying its international portfolio and enhancing value through modernization and reorganization throughout Central and Southern Europe.