Some mug ran a dance in Spanish centre (7)

I believe the answer is:

granada

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'spanish centre' is the definition.
The definition suggests a singular noun which matches the answer.

'some mug ran a dance' is the wordplay.
'some' indicates a hidden word (some of the parts of the word are used).
'GRANADA' is hidden within 'mug ran a dance'.

'in' acts as a link.

Can you help me to learn more?

(Other definitions for granada that I've seen before include "car in > Spanish city" , "City of Andalusia" , "Andalusian city" , "Spanish city, site of the Alhambra" , "Andulasian city" .)

I've seen this clue in the Sydney Morning Herald.

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