Intu Properties Plc formed a joint venture with TH Real Estate to jointly own the Madrid Xanadú shopping center in Spain, with the latter paying €264.4 million to own a 50% stake in the asset.
Intu Properties was in advanced talks to bring in TH Real Estate as a joint venture partner for the property, which it acquired for €530 million in March.
TH Real Estate, on behalf of its European Cities Fund, will own a half-stake in the center and the SnowZone indoor ski slope business, and the deal excludes the management company, according to a release.
Intu will continue to manage the center as per the joint venture agreement, which is subject to completion conditions including regulatory approvals.
The company plans to use the net proceeds from the transaction to repay debt on its revolving credit facility.