Metrovacesa leases 10,200 m[sup]2[/sup] in 1Q 2008

Spanish property giant Metrovacesa said on Tuesday that its shopping centre business has signed 37 new leasing contracts with first-class operators during the first quarter of the year. In total, Metrovacesa has rented 10,200 m² of gross shopping centre space, which will boost annual rents by close to EUR 3 mln. Among the major new leases, FNAC has taken an additional 2,000 m² of space within the Arenas de Barcelona shopping centre, while supermarket chain Champion, part of Carrefour, has rented 2,500 m² of space in the Centre del Mon mall located in Perpignan, France.

In a statement, Metrovacesa said that it expects its rental portfolio will double within the next two years, in line with the company's expansion strategy outlined in the Fenix plan. Under the new plan, Metrovacesa's rental business will increase to represent up to 90% of the company's business by 2010, from 75% at present. The company also said its portfolio of assets is forecast to increase to more than EUR 17 bn by 2010, from EUR 12.8bn at present. Meanwhile, the size of its shopping centre portfolio is expected to double to EUR 2.5 bn by end-2010.

A key pillar of the Fenix plan is the contribution of commercial property assets worth EUR 515mln owned by Sacresa, the holding company of Metrovacesa's majority shareholders, the Sanahuja family, Metrovacesa said. Sacresa will transfer up to seven shopping centres with approximately 450,000 m² of gross space to Metrovacesa in exchange for 6.8 million shares in the company. Following the transfer, Metrovacesa will have a portfolio consisting of eight shopping centres and 12 shopping mall developments.

In October, the Madrid-based group is expected to open a new shopping centre jointly developed with the Joventut basketball club of Badalona. About 90% of the 40,000 m² Magic Badalona mall is prelet six months before its opening.