Encore+ Acquires Parts Of Metro Properties for €86 million
Metro Properties, the real estate entity of Metro AG, has announced that it sold off parts of its real estate portfolio to Spain's Encore+ for €86 million. The deal is a part of Metro-owned Makro Spain’s sale-and-lease-back transaction.
Encore+ has acquired the wholesale and office space of three properties in Madrid that include the flagship store in Barajas, Paseo Imperial and Alcobendas.
Makro has secured ongoing operations through a fifteen-year lease contract with extension options.
CEO of Makro Cash and Carry, Peter Gries said that in the last few years the company has “significantly strengthened its business” in the Spanish hospitality sector.
“The investments we have recently made in our property portfolio by remodelling some of the older sales areas increased the attractiveness even further”, he added.
The three divested properties add up to a gross leasable area (GLA) of around thirty thousand square metres.
Sustainable Property Development
Real estate properties owned by Metro Properties are developed around the theme of sustainability, increasing their sale value.
David Ironside, investment manager of Encore+ at LaSalle Investment Management said, “We strongly believe in the future of these three urban locations over the next fifteen to thirty years and there is long term upside potential, due to several large-scale development projects in the neighbouring areas.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.