MERLIN Properties Annual Report 2018 / English

ı 35 ı Annual Report 20 18 Acquisition of Almada On 20 July, MERLIN completed the acquisition of Almada shopping center in Lisbon. Almada is the undisputed dominant shopping and leisure destination in the south bank of the Tagus river, receiving more than 14.4 million visitors per annum. The popularity of the complex in terms of visitors goes hand in hand with its commercial success, currently nearing full occupancy (98% of GLA let). Due to its excellent connections to the centre of Lisbon, to the A-2 motorway connecting Lisbon to the southern regions of Portugal and to the IC20 connecting Lisbon to the popular beaches of Costa da Caparica, the catchment area covers a population of almost 2.8 million people. This dominant shopping centre features an attractive and superbly balanced retail mix which includes prestigious operators such as Inditex Group’s brands, Primark, H&M, C&A, SportZone, FNAC and NOS Cinemas. With annual gross rents of € 24 million, the asset offers potential for future rental growth through improvements in the management, variable rents and focused capex on selected areas. The acquisition price amounts to € 406.7 million representing a 5.9% gross yield over € 24.0 million of gross rents. SHOPPING CENTERS ALMADA Acquisition Price (€ thousand) 406,651 Asset debt outstanding as of the date of purchase (€ thousand) - Equity disbursement (€ thousand) 406,651 % Debt to acquisition Price of the asset 0% Annualized gross rent 2018 (€ thousand) 24,000 Gross yield 5.9% Total G.L.A. (sqm) 60,049