Intu Properties Plc signed an exclusivity agreement with entities of Ivanhoé Cambridge Group to acquire the Xanadu shopping center in Madrid.

The company confirmed recent media reports and said the deal would be funded via bank financing and existing facilities. It did not disclose financial terms of the agreement.

Intu and TH Real Estate were the finalists for the sale, which is expected to fetch more than €500 million, according to a Jan. 13 report from Spanish daily Cinco Días, which cited sources familiar with the process. If completed at the expected price, the sale would mark the highest figure ever paid for a Spanish shopping center, according to the report.