US funds in Portuguese shopping centres purchase talks

The US fund Harbert Management Corporation is in negotiations with Sonae Sierra to acquire shopping centres LoureShopping, RioSul Shopping and 8th Avenida.

The negotiations are already said to be in an advanced stage and include a portfolio of shopping centres spread out across the country. According to the site PropertyEU, Sonae Sierra is about to close the deal to sell LoureShopping in Loures near Lisbon, RioSul Shopping in Seixal and 8th Avenida in São João da Madeira.
This will be the first investment by this opportunistic fund in Portugal which has had a team on the ground here looking for assets to buy at bargain basement prices.
The assts in question will be sold with an annual yield of around 8% although the purchase ticket for the shopping centres has yet to be revealed. The deals should be signed by the end of the year.
LoureShopping, with 42,000 m2 was opened in 2005 and is held by Sierra Portugal Fund and the German company Deka which had bought Picoas Tower for €125 million.
8th Avenida with 20,000 m2 opened its doors in 2007, has 125 shops and is wholly owned by the Sonae Sierra Portugal Fund.
In turn, RioSul Shopping, 44,000 m2 has 130 shops and is considered the most attractive of the assets. It is held in equal parts by Sonae Sierra Portugal and a pan-European fund.