LaSalle Investment Management and Morley Fund Management today announced that they have acquired or contracted to acquire a total of five assets in Paris, Madrid, Stockholm and Germany, creating a solid base for the portfolio of the Encore+ Fund.
LaSalle Investment Management and Morley Fund Management today announced that they have acquired or contracted to acquire a total of five assets in Paris, Madrid, Stockholm and Germany, creating a solid base for the portfolio of the Encore+ Fund.
Gil Bar, fund manager for Encore+ at Morley Fund Management, said: "Since May 2006, Encore+ has raised nearly €250 million of equity, creating a gross buying power of almost €500 million. We have made good progress in investing this capital and the five properties that we have acquired represent a net acquisition price of over €325 million.
"Moreover in the eight months from the launch of the fund to the end of December 2006, Encore+ generated net returns for its investors of 7.5%, against a target of 8.5% per annum."
Andy Watson, head of LaSalle's acquisitions programme for Encore+, said: "The seed portfolio created over the last year is a good reflection of what we are seeking to create - sustainable income in good locations in the major growth markets of Continental Europe where we can play to our strengths by adding value through LaSalle's asset management teams. Given the continued interest from investors in Encore+, we are looking forward to keeping up this pace of acquisitions with a target GAV of around €650 million by the end of 2007."
The Properties Include:
1. Office building: Liljeholmen, Stockholm, Sweden
Purchased for c€85 million, in an excellent location adjacent to the CDB, this 40,000 m2 building is an income-producing core-plus investment in one of the fund’s major target markets for offices.
2. Shopping centre: Allencenter, Trier, Germany
Purchased for c€42 million, this 22,600 m2 property is well located next to the main train station and principal car park of Trier. Effective asset management, as well as an anticipated downward yield shift due to market restructuring in Germany provide scope for income and capital growth.
3. Office building: La Vaguada – Alcampo HQ Building, Madrid, Spain
Acquired for c€40 million, this 10,300 m2 office building is the headquarters of the Alcampo hypermarket group (part of Auchan), and is next to their flagship store which anchors Spain’s biggest mega-regional shopping centre. The asset offers an exceptionally secure income stream in the short term, and offers further benefits from longer term planned initiatives.
4. Mixed use Office/Retail building: Astorg-Boétie, 8th Arr, Paris, France
Acquired for c€53 million this 6,265m2 property is a classic multi-let, mixed-use Haussmannian style building in the heart of the Paris CBD, providing core income, with indexation and real rental growth. Strong market fundamentals are expected to drive rental growth going forward.
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For more information please contact:
Andy Watson, LaSalle Investment Management +33 (0)1 56 43 46 87
Strahan Wallis, Morley Fund Management, +44 (0) 20 7809 8618
Notes to editors:
About the Encore+ Fund
Encore+ is a monthly priced and dealt open-ended fund, set up by LaSalle Investment Management and Morley Fund Management. The fund is investing across the European Economic Area, excluding the UK, building a balanced portfolio of commercial property with a "core plus" orientation.
The fund is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. Investment into the fund is therefore available only to intermediate customers and those to whom the scheme can be promoted under the Act. As this is an unregulated collective investment scheme all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial Services Compensation Scheme will not be available. The information within this press release should not be regarded as constituting an offer to invest.
About LaSalle Investment Management
LaSalle Investment Management, Inc, a member of the Jones Lang LaSalle group (NYSE: JLL), is a leading global real estate investment manager, with approximately US$40.6 billion of assets under management. LaSalle Investment Management is active across a range of real estate capital and operating markets including private and public, debt and equity.
For more information, visit www.lasalle.com
About Morley Fund Management
Morley Fund Management Limited is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage £162 billion or €239 billion from offices around the world as at 30 September 2006.
Morley manages both institutional and retail funds. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand and in Europe under the Aviva brand.
The property team manages in excess of £27 billion of UK and European property assets, making Morley the largest property fund manager in Europe.
Awards
- 2006, Best Performing Insurance Company Life Fund, IPF/Estates Gazette Property Portfolio Performance Awards (three years > £1bn)
- 2006, Property Fund Manager of the Year, Pensions Management Awards
- 2006, Property Fund Manager of the Year, Property Week Awards
- 2006, Outstanding Company of the Year Award, CEE Real Estate Quality Awards
- 2006, Investor of the Year Award, CEE Real Estate Quality Awards
- 2005, UK Pensions Awards Property Manager of the Year
- 2004, Property Week Fund Manager of the Year Award
- 2003, Property Fund Manager of the Year, Pensions Management Awards
The property team consists of over 70 investment professionals and manages a range of funds on behalf of institutional, pension and retail clients. Morley has been at the forefront of innovation in property fund management and has launched eleven specialist sector based funds with partners, including: Igloo Regeneration Fund, Quercus Healthcare Property, The Junction and The Mall.
Further information about Morley Fund Management can be found at www.morleyfm.com or www.morleyproperty.com