Union Investment has acquired the “Continente Colombo” hypermarket operated by grocer Sonae MC in Portugal’s capital Lisbon. The hypermarket has a distinctive pre-cash zone with various service, retail and restaurant units and covers a total leasable area of 23,445 sqm. The acquisition property is part of the Centro Colombo Shopping Center, which opened in 1997 and is the dominant and busiest shopping center in Portugal with over 300 tenants. The purchase is for the institutional open-ended mutual property fund UniInstitutional European Real Estate. The parties have agreed not to disclose the purchase price.
“With the acquisition of Continente Colombo, we were able to seize the opportunity to further diversify our real estate portfolio in Iberia and realize our market entry in the retail segment in Portugal,” explains Laura Roll, Investment Manager at Union Investment.
In addition to its attractive mix of uses, Centro Colombo is notable for its high-frequency location directly opposite the Estádio da Luz and excellent accessibility: By car, the shopping center is reached via the Segunda Circular, the main transport link between the west and east of Lisbon. With direct access to the subway and the adjacent bus station, the property location is one of the most important public transportation hubs in Lisbon.
“With the acquisition of Continente Colombo, we have succeeded in combining the two pillars of our retail investment strategy: this focuses on food-anchored local retailers on the one hand and best-in-class shopping destinations on the other. We will continue to selectively expand our portfolio in both areas in the future,” adds Roman Müller, Senior Investment Manager at Union Investment.
Union Investment was advised by Linklaters, Cushman & Wakefield and Sierra Portugal, who will also manage the properties for Union Investment in the future. Jamestown Europe GmbH managed the sale for a Luxembourg pension fund and was advised by Garrigues and Arcadis.
