Lar España Real Estate SOCIMI SA received a €98.5 million bank loan to finance the Palmas Altas retail project in Seville, Spain.
The retail project, scheduled to open in spring 2019, is slated to become the largest property in the company's portfolio and one of the largest retail complexes in the Andalusian region.
The seven-year loan, structured as a special purpose vehicle, was granted by Banco Santander, Banc Sabadell, Liberbank and Unicaja Banco. The loan bears an interest rate of Euro Interbank Offered Rate plus 2.25% for the first two years and plus 2% for the following five years.
The project will span 100,000 square meters of retail and family leisure space with almost 150 retail units. The center is 63% pre-let, and the company expects to lease 90% of the property by the end of 2018. The center has a Building Research Establishment Environmental Assessment Method certificate for sustainability and reduced carbon dioxide emissions.