Sonae Sierra is an international retail real estate company dedicated to developing and servicing vibrant retail-centred properties. We develop and invest in sustainable retail assets and provide investment, development and property management services for clients in geographies as diverse as Europe, South America, North Africa and Asia, while creating shared value for our business and society.
Incorporated in Portugal in 1989, Sonae Sierra is owned by Sonae, SGPS (Portugal) with 70% and Grosvenor (United Kingdom) with 30%.
We add value to our investors and other stakeholders by putting our unique know-how at their disposal through the development of outstanding projects and the delivery of professional services covering the complete retail real estate lifecycle, leveraged by the successful track record with our own projects.
Our vision is to develop and service vibrant retail-centred properties.
We aim to be the partner of choice by developing long term and reliable partnerships with all our stakeholders, driven by a clear emphasis on trust, integrity, efficiency and flexibility. We share our proven track record to best serve our clients’ interests and provide the right advice for investors, while delivering outstanding shared value leveraged by a sustainability driven strategy.
Shopping Centres and New Projects
- Owner of more than 40 shopping centres with a total GLA of 1.9 million m2 and an Open Market Value of €7bn.
- Responsible for the management and/or leasing of more than 75 shopping centres.
- 15 projects under development, including 9 for third parties.
Investment principles & strategy
Through our strategy of increasing exposure to developments and expanding the provision of professional services, we add value to investors and stakeholders by partnering with them and putting our unique know-how at their disposal. These pillars are supported by a capital recycling strategy that transverses both pillars of our strategy and acts as an enabler to our future growth by releasing capital to finance new developments, reducing our exposure to investment risks, and protecting future returns by securing management contracts.
Our sustainability strategy supports our business strategy through its focus on creating shared value with all stakeholders; from sustaining the resources and relationships which we are dependent upon, to safeguarding our continued capacity to do business in the short, medium and long term.
In addition to the direct ownership of some of our retail real estate assets, we co-own and manage many others through innovative investment funds launched in partnership with international investors. The management of each fund follows a common commitment: Sonae Sierra owns part of the funds and manages the assets for the duration of the investment, generating the possibility of maintaining the partnerships with the tenants and co-owners of each asset whilst freeing capital to invest in new locations or take advantage of new business opportunities, thus increasing the value of the portfolio.
Inception: The Sierra Fund was launched in 2003. Five reference investors joined Sonae Sierra as co-investors in the fund: ABP, CDC, CNP Assurance, Ecureuil Vie and TIAA-CREF, with a total combined commitment of 49.9%. In 2015, APG, on behalf of ABP, acquired the interests formerly owned by CDC, CNP Assurance, Ecureuil Vie and TIAA-CREF.
Key assets: The fund comprises currently a diversified portfolio of 15 properties, combining mature assets in major cities with newer schemes and projects in provincial locations across Portugal and Spain. Includes shopping centres such as Centro Colombo and Vasco de Gama (Lisbon) and NorteShopping (Porto) in Portugal, and Plaza Mayor (Málaga) in Spain.
Strategy: To assemble a market leading portfolio of shopping centres in Portugal, Spain, Italy and Greece.
Fund manager: Sonae Sierra.
Sierra Portugal Fund
Inception: The Sierra Portugal Fund had its first closing in March 2008, with three reference investors joining Sonae Sierra: KEVA (formerly LGPI), Ilmarinen and Schroders. A second closing took place in summer 2008 with Goodman (later Aberdeen FOF). By October 2013, Aberdeen sold its combined interests to Partners Group. By March 2016, Sonae Sierra sold a 25% interest to Madison International Realty. By October 2016, Madison International Realty acquired the interests held by Partners Group.
Key assets: The Sierra Portugal Fund comprises a diversified portfolio of six properties combining mature assets in major cities with newer schemes and projects in provincial locations. Includes shopping centres such as GaiaShopping (Porto) and Rio Sul Shopping (Greater Lisbon).
Fund manager: Sonae Sierra.
Inception: Iberia Coop was launched in March 2016, and the initial transaction comprised the acquisition of three regional shopping centres in Spain and Portugal, which were owned by the Sierra Fund. The three centres were AlgarveShopping and Estação Viana Shopping, both in Portugal, and Luz Del Tajo in Spain. Iberia Coop acquired Albufeira Retail Park in 2017. Under this venture, clients represented by CBRE GIP have a majority stake in the investment structure with Sonae Sierra retaining a minority share and acting as local operating partner and asset and property manager.
Strategy: to own and operate dominant shopping centres in the Iberian Peninsula. Fund manager: Sonae Sierra.
Inception: ORES Socimi is a real estate investment vehicle that was launched in December 2016 by Sonae Sierra and Bankinter, targeting the latter’s private banking clients, and was created under the Spanish “SOCIMI” regime. The objective is to invest in the Spanish and Portuguese retail real estate markets, aiming to reach circa € 400 million of total investments. On February 22nd 2017, ORES’ shares were listed in the Spanish secondary stock exchange market, MAB (Mercado Alternativo Bursátil), with Bankinter Group and Sonae Sierra retaining a shareholding position. At the end of 2018 ORES Socimi have already acquired 34 retail assets.
Strategy: Invest in commercial real estate assets in Iberia, while delivering attractive mid‐term returns (within a 7-year horizon) to its investors.
Fund Manager/Asset Manager: Sonae Sierra / Bankinter
News from Sonae Sierra (Real Estate - Homepage)
• The project entails a total investment of 52 million euros and 40,000 m2 of gross lettable space, becoming the city’s largest shopping centre.
Thessaly has now got its own outlet, Fashion City Outlet, in the city of Larissa. The first outlet and entertainment centre in Thessaly opened its doors to public today, in the presence of representatives of local authorities, international and local businesses and a large number of customers.
• Direct Result rises 9,7% to €49.6 million • EBIT reaches €77.5 million, a 2.3% increase • Tenant sales and rents perform positively • Successful implementation of the capital recycling strategy • Continued growth in services turnover and margin
Sonae Sierra wins Silver Stevie Award in 2018 International Business Awards with Bright Programme download
Sonae Sierra was named the winner of a Silver Stevie Award in the “Energy Industry Innovation of the Year” in the 15th Annual International Business Awards.
• Direct Result rises 9.3% to €33 million • EBIT reaches €51.8 million, a 3.7% increase • Tenant sales and rents perform positively • Successful implementation of the capital recycling strategy • Growth in services turnover
News from IPE Real Assets
Joint venture buys three assets in Spain, Portugal
White Papers / Research from Sonae Sierra (Real Estate - Homepage)
In CascaiShopping, an adjacent area of the food court was underutilized and underperforming with some outdating restaurants.
Case Study: Places where people belong - contemporary destinations which celebrate a cultural legacy download
Sonae Sierra is an international retail real estate company but it doesn’t mean we leave aside the local impact and signature. Our Development Services team create design concepts that merge and celebrate the local culture in our and our clients’ shopping centres.
Case Study: Sonae Sierra borrows designs from nature to create award-winning shopping centre download
Building a shopping centre that truly integrates in its surrounding and it’s a part of the environment its truly a challenge. More than designing buildings Sonae Sierra designs experiences and shopping extensions of the places where the assets are.
In the Romanian retail property market, building standards are not yet as stringent as those in other European countries in what concerns environmental and safety preventive design, and to date very few commercial buildings have obtained sustainability-related certifications.
Analysis from IPE Real Assets
Shopping centre groups are falling over themselves to proclaim their position as the most digitally advanced of mall owners. Mark Faithfull reports on asset management in a digital world
Overseas money is targeting the continent and investors are broadening their strategies, writes Mark Faithfull