• The firm continues its expansion in Portugal with this shopping centre located on the island of Madeira, its fifth asset acquired in the Portuguese market.
• The transaction offers an entry yield on net operating income (NOI) of 9.5% and is expected to be completed by 30 April.
• The asset boasts 100% occupancy and receives a total of 5.4 million visits annually, with over 33% coming from international tourists.

Castellana Properties, the listed company and leading player in the retail real estate sector, has today announced the acquisition of Forum Madeira, a shopping centre located in Funchal (the capital of Madeira island), for a total of €63.3 million from DWS. The transaction offers an entry yield on net operating income (NOI) of 9.5% and is expected to close effectively on 30 April. Following the company’s recent acquisitions, Castellana Properties’ gross asset value (GAV) now stands at around €1.7 billion, with a total of 21 assets, including Forum Madeira.

This acquisition marks Castellana Properties’ fifth in Portugal since entering the market in October 2024, reinforcing its commitment to the Portuguese market and its strategy of expansion and geographical diversification through dominant assets in key catchment areas. Since its opening in 2005, Forum Madeira has become the island’s leading fashion destination, with a gross lettable area (GLA) of 21,472m² across three levels. It attracts approximately 5.4 million visits per year, over 33% of which are from international tourists.

Forum Madeira is located in a well-established residential area that is also undergoing significant development. The location is renowned for its tourist appeal and an increasingly active luxury residential market. The centre has a catchment area of approximately 250,000 residents, along with 2.3 million tourists annually. It is just an eight-minute drive from Funchal city centre and five minutes from the ER101 motorway, which connects the island from east to west. The area is undergoing transformation, with developments such as Dubai Madeira, which is expected to complete in 2029 and will include 400 luxury apartments—further strengthening the commercial centre’s immediate area of influence.

With an occupancy rate of 100%, this asset offers a unique retail mix on the island of Madeira, including all Inditex group brands, the Pingo Doce supermarket, and various other major retailers. It also provides 800 parking spaces for visitors.

Alfonso Brunet, CEO of Castellana Properties, commented: “The addition of Forum Madeira to our portfolio reaffirms our growth trajectory and our firm commitment to the Portuguese market. This asset not only strengthens our strategy of geographical diversification and international expansion, but also reflects our long-term vision and commitment to solid, sustainable growth. We continue to invest in dynamic and promising markets such as Portugal, where we aim to generate value and build for the future.”

In October 2024, Castellana Properties began its operations in Portugal with the acquisition of three shopping centres—RioSul Shopping, LoureShopping and 8ª Avenida—in a deal valued at €176.5 million. More recently, in December, the company added Alegro Sintra to its portfolio, consolidating its position as a key player in the Portuguese retail real estate market.