• In exchange for €176.5 million, Castellana Properties will gain its first foothold in the Portuguese market and fast-track its growth across the Iberian region

• The deal will see the company add two shopping centres in Lisbon and a third in Porto – all leaders in their respective markets – to its portfolio

Castellana Properties, the specialist listed retail property firm, has reached an agreement with Portuguese company Suitable World to acquire three of its shopping centres for a total of €176.5 million.

RioSul and Loures shopping centres in Lisbon and 8ª Avenida in Porto will now be brought under the Castellana Properties name. The Socimi will gain its first foothold in the Portuguese market, fast-tracking its growth across the Iberian region. Subject to financing, the deal is expected to complete in October 2024.

The move aligns with Castellana Properties’ long-term strategy of focusing exclusively on the retail sector, amassing a portfolio of regionally dominant assets. Portugal’s vibrant mall culture, and the solid sales metrics displayed by these particular centres, promise to open up many new growth opportunities for the company.

A strategic move

All three centres, to be managed directly by Castellana Properties, have a distinct set of strengths that add up to a compelling opportunity for the Socimi.

RioSul is a household name in Lisbon, with a roll call of leading brands including Zara, Bershka, Pull&Bear, Stradivarius, Ikea, Foot Locker and C&A, an extensive selection of F&B outlets and several cinema screens. The centre has a GLA of 46,006 sqm, of which Castellana Properties will acquire 23,515 sqm. One of the Portuguese capital’s top retail destinations, it attracts around eight million visits every year. It also offers significant potential for further growth – thanks to a strategic location on Lisbon’s up-and-coming South Bank, which saw its population grow by 5.5% between 2012 and 2022.

Meanwhile, Loures is located to the north of the city in the district of the same name. Opened in 2005, it has a total GLA of 44,745 sqm, of which Castellana Properties will acquire 29,398 sqm. It offers a lineup of international brands including Zara, Bershka, Pull&Bear, Stradivarius, H&M, Foot Locker and C&A, a wealth of F&B options and a cinema complex. The centre reports an annual footfall of roughly six million and stands in a key growth area for the greater Lisbon conurbation. The district’s population expanded by 13% between 2011 and 2021; a new metro station, accessed from within the shopping centre, is expected to open by 2026.

Finally, 8ª Avenida is the only shopping centre in São João da Madeira, an industrial city 40 minutes south of Porto. Launched in 2007, it has a total GLA of 28,923 sqm, of which Castellana Properties will acquire 21,170 sqm, and boasts a variety of big-name brands such as Lefties, Bershka, Pull&Bear, Stradivarius and Cortefiel, a strong F&B offer and a cinema complex. With an annual footfall of six million, it has a catchment area of approximately 260,000 people within a 20-minute driving radius.