Country-Specific Info

Encore+ acquires shopping centre in Salamanca

Encore+ continues its recent run of acquisitions with the addition of the El Tormes shopping centre in Salamanca, Spain, for €70 million. Encore+ is a pan-European open-ended Core+ fund, co-managed by Aviva Investors as Fund Manager and LaSalle Investment Management as Asset and Transaction Manager.

The Fund is currently enjoying significant momentum in both capital raising and deployment, having broken through the €1 billion mark in late 2016, and now with total assets of more than €1.2 billion under management.* El Tormes was acquired in a share deal from Retail Property Fund Iberica (RPFI), managed by CBRE Global Investors.


The shopping centre, which is spread over a total area of 22,600 m², offers a diverse retail mix, with over half of the units occupied by premium fashion retailers. Other key tenants include restaurants, supermarkets and speciality retailers. The centre has enjoyed consistently high occupancy levels, with many tenants present since the centre opened in 2000. It benefits from a strong location, situated at a busy road junction that connects the centre with the main motorway and most affluent residential neighbourhood of the city.


The city of Salamanca and its immediate surroundings benefit from the positive dynamics underpinned by the city’s destination as a tourist and student town. The low costs of housing and transport mean that locals spend relatively more on retail – in particularly they enjoy leisure shopping, eating and going out.


Encore+ has a successful 10+ year track record as a diversified, open-ended Continental European real estate fund, delivering stable and growing income alongside long-term capital appreciation, from an actively-managed portfolio. It was recently, for the second time, ranked by MSCI as the top performing fund on a three-year rolling basis in the IPD Pan-European Property Funds Balanced Funds Index (PEPFI). The three-year return for the Fund is more than 9.3% (as at 28 February 2017).


Jeffrey King, Fund Manager for Encore+ at Aviva Investors, said: “We are very pleased to be making a further investment in Spain as Encore+ continues to diversify its portfolio across the continent. In addition to Spanish retail being a core target for us, this new acquisition also fits well with our strategy of targeting dominant shopping centres in strong and sustainable locations across Europe. This asset is poised to benefit from the continued recovery in Spain, while also offering the potential for specific asset management initiatives to improve the centre’s performance.”


Ian Williamson, Investment Manager for Encore+ at LaSalle Investment Management, said: “I am delighted to add this asset to the growing Encore+ portfolio. It will grow the Fund in a market identified as a target for new acquisitions – shopping centres, as well as strengthening the Fund’s asset diversity, making retail broadly a third of the overall weighting. We see this as an opportunity to generate value by repositioning the asset within the Core+ spectrum and maximising its strong fundamentals. Furthermore, the asset fits within our investment strategy of focusing on demographics, technology and urbanisation and should add long term stability to the Fund’s income stream.”