Sevilla Factory: retail investment in Dos Hermanas

The recent purchase of the shopping mall, Sevilla Factory, has been the subject of numerous headlines in the local and specialised press. It’s also an example of the transactions happening recently in the property sector and specifically in retail investment. Read on to discover the keys behind this acquisition and the role Synesi played in it.

An attractive shopping mall for investment

Sevilla Factory, located in Dos Hermanas on the outskirts of Seville city, is the first outlet mall that opened in Andalusia. With 20,000 square metres of space, it houses Spanish and international brands such as Benetton, Cortefiel, Stradivarius among many others. It also has a restaurant section, 1,200 parking spaces and an adjoining building for promotional events.

Beyond the purchase: a new management model

The current health and economic situation have undoubtedly caused a huge impact on the property sector. For this reason, a purchase nowadays necessarily involves more significant changes in terms of its revitalization.

In this sense, Genesis S.L., who made the purchase have handed management of the shopping mall over to LAP Retail, whose approach will focus on supporting the operators. As Eduardo Suárez explains in elcorreoweb.es, the strategy objective must aim to “support the operators, sharing risks with them and aligning both parties’ interests”.

A growing sector

It might surprise many to discover that retail investments actually increased by 4% last year according to research by Knight Frank. And within the sector, shopping malls were the property type with the most investment, accounting for 40% of the total.

In fact, these operations represent the most positive side of the property market. According to BNP Paribas Real Estate, total investment volume in Spain saw a drop of 29.3% in 2020 compared to 2019. In this context, the rise in retail makes even more attractive reading.

The part played by Synesi: identifying retail investments for our clients

An essential part of the services we offer our clients consists of identifying business opportunities and promoting investments in interesting assets, whether this is through direct management of operations or through third parties or collaborators.

In this transaction, we brought a third of the property investors to Genesis S.L.,

the investment vehicle used for the operation. We had previously carried out comprehensive research with risk and benefit analysis to be able to identify later on those of our clients who would find it the most interesting proposition.

It is, in fact, a project looking to the future. An opportunity to relaunch a shopping mall with huge possibilities for revitalization. Plus, the chance to apply a new management model that sets its foundations in the shared growth model that we advocate at Synesi.