CBRE Global Investors is extending the life of its Retail Property Fund Iberica for a further five years in a move aimed at benefiting from Spain's ongoing property bonanza.

CBRE Global Investors is extending the life of its Retail Property Fund Iberica for a further five years in a move aimed at benefiting from Spain's ongoing property bonanza.

CBREGI said that the extension approval from its limited partners has been unanimous, with only a small number of investors opting to redeem their capital.

The original fund duration was 10 years from 2000, with a two-year extension until April 2012 followed by a number of short-term extensions and a three-year disposal plan approved in December 2013.

The five-year extension will allow the team to focus on the execution of the fund strategy which is aimed at enhancing the value of core assets, including extensions and/or refurbishments, as well as disposing of non-core assets, CBREGI said in a statement.

'This is testament to their confidence in our team in Iberia and also the changing fortunes of that market where investors see the opportunities and want to remain part of it,' commented Dennis van Vugt, EMEA CFO at CBRE Global Investors and General Partner of the RPFI.

Jose Borregon, fund manager of the RPFI, added: 'The extension demonstrates the rapid change seen in the Spanish market during 2014 with many investors now ready to commit to the market for the long-term. The five-year extension has now given us the luxury of time to be able to enhance the value of the assets and work on giving our investors the best return on their investment.'

RPFI is invested in shopping centres in Spain and Portugal. As of December 2014, the fund's portfolio comprises 14 assets and the total gross asset value of circa €1.1 bn.

In November last year, the fund sold its stake in La Farga Shopping Centre near Barcelona to private equity group Temprano Capital Partners for an undisclosed sum.

The 17,520 m2 mall was jointly held by Sierra Fund, a pan-European retail fund in which Sonae Sierra has a 50.1% stake, and the Retail Property Fund Iberica (RPFI), which is managed by CBRE GI.