LaSalle agrees two major lease extensions in Madrid

LaSalle Investment Management has agreed two major lease extensions with hypermarket operator Alcampo in Madrid. Acting on behalf of two Continental European funds, Encore+ and LaSalle Euro Growth II (LEG II), LaSalle has completed the lease extensions on La Vaguada, the tenant's office headquarters in the centre of Madrid and the Camarma de Esteruelas warehouse in the Henares Corridor outside of Madrid.

A five-year lease extension was added to the 10,300 m2-La Vaguada premises. LaSalle said that the negotiations resulted in a significant valuation increase to the asset, which is held in Encore+, an open-ended property fund focused on continental Europe.

LaSalle has also negotiated a five-and-a-half-year extension to the lease term at the Camarma de Esteruelas warehouse, which is located 33 kilometres northeast of Madrid. The 70,000-m² property is leased until early 2018.

Helen Garbutt, international director at LaSalle Investment Management said: 'Given the recent challenges in the Madrid real estate market, we are delighted to have confirmed these lease extensions. Both funds, Encore+ and LEG II, are focused on identifying lon- term growth in European real estate. Securing long term leases re-affirms our aim to invest in long term growth assets. We are continuing to source real estate in Europe that reflects this strategy.'

Launched in 2006, the Encore+ Fund is jointly managed by Aviva Investors and LaSalle and has a gross asset value of EUR 600 mln. Encore+ is part of a global suite of long-term, open-ended property funds managed by LaSalle.

The LaSalle Euro Growth II, launched in 2001, is a closed-end pan-European real estate fund with an original investment capacity of EUR 1 bn.