VALENCIA: Unibail-Rodamco-Westfield (URW) announced today an agreement to sell Bonaire, an open-air shopping center located in Valencia, Spain, to Castellana Properties, the Spanish subsidiary of Vukile Property Fund.
The disposal price is set at €305 million, a premium to the last unaffected book value. The transaction is expected to be completed in March 2025.
The asset, which reopened on February 13, 2025, following flooding in the Valencia region in October 2024, has undergone significant refurbishment. The common areas and retail units on the ground floor, which were impacted by the flooding, have been fully renovated.
Many tenants have taken this opportunity to introduce new concepts and upgrade their stores. Currently, the asset occupancy ratio stands at approximately 98%, with around 80% of stores that have already reopened or are expected to open before the end of March.
As part of the agreement, URW has granted Castellana Properties an 18-month Net Operating Income (NOI) guarantee with a cap of €32.9 million to cover the stabilization period. Due to the strong occupancy levels, it is anticipated that only a marginal portion of this guarantee will be utilized.
With this transaction, URW has now completed or secured €0.9 billion of transactions in 2025, which will reduce the Group’s proportionate net debt by the same amount.