LaSalle fund buys shopping centre in Bilbao for 7.9% yield

LaSalle Investment Management has made its second acquisition in Europe within a month on behalf of Encore+, with the purchase of a shopping centre in Spain.

Bilbondo, a 40,000 m2 shopping centre with 2,000 parking spaces, is situated in Bilbao, and has been acquired from CBRE GI for just under €60 mln, representing a net initial yield 7.90%.

It was the first shopping centre to open in Bilbao in 1990 and is located in the densely populated Basque Country. Anchored by an Eroski hypermarket, the scheme includes 39 further units which are home to Media Markt, Kiabi and C&A as well as other popular retailers.

The news follows the announcement last month that LaSalle had made its first acquisition in Central Europe on behalf of Encore+, with the purchase of Futura Retail Park in Wroclaw, Poland.

Encore+ is a diversified, Continental European real estate fund which aims to deliver stable income alongside long-term capital appreciation, from an actively-managed portfolio, in a monthly dealt open-ended fund structure. The fund has been co-managed by LaSalle Investment Management and Aviva Investors for almost 10 years.

'The Spanish market is currently competitive and perseverance is required to access and close a deal,' noted Pablo Rodríguez Casal del Rey, Associate director at LaSalle Investment Management - Spain. 'Investors naturally need to seek out markets which provide the appropriate combination of risk and return to meet their requirements.'

Gil Bar, Fund manager for Encore+ at Aviva Investors, added: 'This year Encore+ has seen especially strong new inflows and we look forward to further growing the fund in 2016.'

Encore+ was advised by JLL and Hogan Lovells whilst CBRE GI was advised by CBRE and Clifford Chance.