Target Information

The Planetocio leisure centre, covering an area of 21,000 sqm, is situated in Collado Villalba, a suburb of Madrid. Currently, it boasts an impressive 95% occupancy rate, with 80% of its tenants representing leading entertainment, dining, and leisure brands, including well-known entities such as Yelmo Cines, Media Markt, McDonald's, and Ginos. The center has shown resilience by swiftly recovering from the pandemic, attributed to its extensive leisure offerings. Notably, footfall and sales have surged by 5.8% and 9% respectively in the current year compared to 2022.

Azora is poised to enhance the centre's appeal through a comprehensive renovation and asset management program aimed at positioning Planetocio as the premier family leisure destination in its catchment area. The centre is conveniently accessible via local bus services and the nearby Los Negrales railway station, alongside its proximity to the A-6 motorway, facilitating seamless connectivity to both the northwest of Spain and Madrid.

Industry Overview in Spain

The leisure and entertainment industry in Spain is experiencing a robust recovery following the pandemic, with increasing consumer demand for recreational spaces. This sector is vital to Spain's economy, attracting both local and international visitors, contributing significantly to job creation and revenues. As restrictions have eased, a noticeable uptick in consumer spending has been observed, particularly in family-oriented leisure activities.

Spain's leisure market is diverse, encompassing various sectors such as cinemas, theme parks, dining establishments, and shopping centres. The integration of technology, combined with a growing emphasis on unique customer experiences, has led to innovative solutions that enhance engagement and satisfaction among visitors. This market dynamism presents numerous growth opportunities for operators willing to invest and adapt to evolving consumer preferences.

The demographic trends in Spain further bolster the sector's potential, with a rising population of families and young adults seeking out leisure options. Collado Villalba, in particular, benefits from its strategic location near Madrid and its picturesque surroundings, making it an attractive destination for residents and tourists alike.

Overall, the industry's landscape is shifting towards more experiential offerings, with an increasing focus on integrating health and wellness components into leisure. Given the ongoing investments in leisure facilities, the future appears promising for stakeholders involved in the sector.

Rationale Behind the Deal

The acquisition of Planetocio aligns seamlessly with Azora's strategic vision of capitalizing on the growing leisure sector post-pandemic. As families resume their recreational activities, the demand for well-managed leisure spaces is on the rise. By repositioning Planetocio, Azora aims to tap into this emerging market, further enhancing the centre’s value and appeal to visitors.

Moreover, Azora's expertise in value creation through strategic asset management positions the firm advantageously to leverage the centre’s existing strengths while identifying new growth pathways. This acquisition marks Azora’s first foray into the leisure sector for its multi-strategy vehicle, Multi Strategy JV II, showcasing the investor's commitment to diversifying their portfolio amidst a recovering economy.

Investor Information

Azora is a Madrid-based private equity firm specializing in European real estate investments. The firm launched its Multi Strategy vehicle, Multi Strategy JV II, in H1 2023, with an investment capacity of approximately €500 million, focusing on Southern European markets. Following the successful raising of €270 million in equity commitments, Azora has swiftly executed on its investment strategy, with 75% of the vehicle already deployed across diverse asset classes.

Azora's portfolio includes a variety of properties, such as hotels, office complexes, and land developments, underscoring its flexibility in navigating different market segments. With a proven track record in asset management and value creation, Azora aims to strengthen its presence in the leisure sector by optimizing the performance of Planetocio and meeting the growing demand for family-oriented experiences.

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The investment in Planetocio appears to be a sound strategic move for Azora, given the center's solid occupancy rates and demonstrated demand for leisure activities in the area. The planned repositioning and management initiatives will likely enhance the centre's attractiveness and operational efficiency, contributing positively to its valuation in the long term.

Given the favorable demographics in Collado Villalba and the ongoing rebound in the leisure sector across Spain, Azora is poised to capture a significant market share. The strategic location, coupled with effective asset management, could result in robust returns on investment as consumer preferences continue to shift toward engaging family-friendly experiences.

Furthermore, Azora's established expertise in repositioning assets positions them well to navigate potential market challenges and capitalize on emerging opportunities. As they work to upgrade Planetocio's facilities, the investor could very well realize the potential for increased footfall and higher revenues.

In summary, the acquisition represents a promising investment opportunity for Azora with substantial room for growth, particularly as leisure becomes an increasingly essential component of consumer lifestyles in Spain.

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