Banco Santander launches “Santander Real Estate Opportunities”, a €300M retail fund managed by Retailco to buy shopping centres, retail parks and commercial premises in Spain and Portugal.
Banco Santander has launched a new real estate investment fund focused on the retail sector that could mobilise up to €300 million to acquire shopping centres, retail parks and commercial premises across Spain and Portugal.
The vehicle, named Santander Real Estate Opportunities, is being managed by Retailco — the Santander subsidiary created in 2021 to manage the bank’s vacant branch premises — and is promoted by Santander Alternative Investment, part of Santander Asset Management. The fund was approved by Spain’s National Securities Market Commission (CNMV) in December.
Key terms and strategy
• Fund target and size: the vehicle aims to raise €150 million in equity and will be able to invest up to €300 million through leverage and co-investments. Grupo Santander will commit roughly €30 million, about 20% of the planned equity raise.
• Asset mix: planned purchases include shopping centres, retail parks, street-level premises and mixed-use buildings with commercial components.
• Portfolio and return goals: the fund expects to acquire between eight and ten assets in Spain and Portugal and is targeting a double-digit annual return.
• Duration and management: the vehicle has a ten-year duration. Retailco will handle asset management, using its expertise in renting, selling, repurposing and transforming properties previously owned by the bank.Market context
Santander’s move follows a broader trend of Spanish financial institutions and investment managers refocusing on retail real estate. Other players have also been active: Banca March acquired Madrid’s ABC Serrano, and Bankinter has retail exposure through a fund with Sonae Sierra and Ores Socimi. Separately, Santander’s private banking arm (Santander Private Banking Advisory, SPBA) and partners have recently purchased stakes in prominent shopping centres — including 50% of Xanadú (Madrid) for €200 million, Ballonti (Bilbao) for €120 million, AireSur (Seville) for €80 million and Moraleja Green (Madrid) for €65 million.
Beyond retail, Santander’s alternative asset manager has been active in residential development with co-investment funds and several ‘flex living’ projects under development in Madrid and Valencia in partnership with Aedas Homes and Neinor Homes.
Why it matters
By repurposing and professionalising branch and retail real estate, Santander is seeking to capitalise on recovery and repositioning opportunities in the retail market while monetising its own property stock. The fund underscores continued investor interest in shopping centres and urban commercial space as part of diversified real estate strategies amid changing consumer and urban trends.
