Deka Group prepares to sell Inditex’s real estate assets in Spain to IBA Capital for 100 million euros

Deka Group, a step closer to sell Inditex’s real estate assets bought in Spain. The German investment firm is conducting negotiations with Spanish-born fund IBA Capital in order to sell most of the retail properties that it acquired from the Spanish fashion juggernaut in early 2018. The amount of the transaction would be around 100 million euros, according to sources consulted by real estate newspaper EjePrime.

IBA Capital, which hasn’t confirmed neither denied the talks with Deka, would buy more than ten assets located in secondary Spanish cities, as the German company would reserve some premises within its real estate portfolio, such as the one in Calle Preciados 16, in Madrid, or Carrer Pelai 58, in Barcelona, as well as those located in Portugal.

The acquisition of the premises currently leased by Inditex and owned by Deka would be made through a brand new fund launched by IBA Capital and focused in high street. The sale would include the assets located in Spanish towns such as Zamora, Albacete and Ciudad Real. Deka acquired the 16 retail properties last January for nearly 400 million euros from Zara, which were sold under a sale-and-leaseback transaction.

Deka will keep between four and six premises of the asset package that it bought from Inditex in early 2018

Both the purchase in early 2018 and the possible sale demonstrates Deka’s interest in the Spanish market. As EjePrime said, the Deka roadmap involves doubling the volume of investment in the country from 1,000 million euros to 2,000 million euros in the next five years.

Currently, the German investment firm owns several tertiary assets in Spain, among which are the building located in Avenida Diagonal 640 and the Sarrià Forum office buildings, both in Barcelona, or the mixed usage office and retail building in El Triangle, also in the Catalan city.