Encore+, a fund jointly managed by Aviva Investors and LaSalle Investment Management, has acquired a portfolio of three retail assets in Spain.

The €1.7bn open-ended continental European real estate fund said it bought the portfolio in Madrid, which comprises wholesale retail with additional office space, from Makro Autoservicio Mayorista in a sale and leaseback deal.

No financial details were disclosed.

The three wholesale retail units are situated in Paseo Imperial, Barajas and Alcobendas.

The Paseo Imperial property was built in 2012 and provides over 3,000sqm of cash-and-carry on the ground and first floor with over 5,000sqm of office space across six upper floors, Encore+ said.

Barajas provides almost 13,000sqm of cash and carry area together with 740 car parking spaces.

The Alcobendas asset provides around 13,000sqm of warehouse space over basement, ground and mezzanine floors along with 666 parking spaces.

Jeffrey King, the fund manager of Encore+ at Aviva Investors, said: “The acquisition is part of our strategy to purchase higher-yielding assets and increase the fund’s exposure to logistics.

The combination of its urban location, combined with the sector and aggregate lot size, makes this a good fit for the fund. The portfolio is let to an occupier with a strong covenant and is an attractive lot size in terms of investment liquidity.”

David Ironside, the investment manager of Encore+ at LaSalle Investment Management, said: “We strongly believe in the future of these three urban locations over the next 15 to 30 years and there is long-term upside potential due to several large-scale development projects in the neighbouring areas.

“The assets will be maintained as cash and carries, but there are multiple opportunities for redeployment as urban logistics centres or redevelopment as new office and residential space in the future. In the meantime, the assets will generate strong and secure income for Encore+.”

In May this year, LaSalle agreed to buy Aviva’s rights and responsibilities as the fund manager of Encore+. The fund has been jointly managed and run by both parties for 11 years.

The deal is expected to close by the end of the year.