Article date: 31 May 2006
Two of the leading European property fund managers, Morley FundManagement and LaSalle Investment Management have teamed up tolaunch Encore+, a new continental European property fund.
Encore+ is a monthly priced and dealt, open ended fund. It willinvest across the European Economic Area (EEA), excluding the UK,and aims to assemble a balanced portfolio of commercial propertywith a “core plus” orientation. An element of the fundwill be held in property shares, bonds and cash forliquidity.
The fund has already contracted on three properties, including ashopping centre in Trier, Germany, an office park in Stockholm, andan office building in Madrid with a total value of approximately€172 million. A further €150 million of acquisitionsare in exclusivity.
The fund follows the established governance structure ofMorley’s UK and continental European specialist funds withMorley having overall fund management responsibilities, and LaSalleresponsible for procurement and asset management. The fund isprincipally targeted at institutional investors.
Ben Stirling, head of European property funds, Morley FundManagement, said: “Encore+ gives investors access to the corestrengths of two property heavyweights. Morley is the largestproperty fund manager in Europe* and has more than £7.2bn of openended property funds under management (as at 31 March 2006). Theextension of our open ended funds business into continental Europeis a natural progression for us.
“Allied to LaSalle’s strong local presence and trackrecord across the region we believe that Encore+ will appeal toinvestors seeking a balanced and relatively liquid exposure toEuropean property, with its attractive diversification and returncharacteristics. This new fund reflects our continuing commitmentto growing our presence in Europe.”
Jeff Jacobson, regional CEO Europe, LaSalle Investment Management,said: “Morley is a manager we have known and respected for anumber of years both as a partner in some areas of our business andas a competitor in other areas. We are very excited about workingtogether with Morley on the Encore+ fund where we are combining thestrengths of both organisations to create a unique opportunity forinvestors.
“The fund’s first assets are a good reflection of thestyle of portfolio we will be creating. They offer sustainableretail and office income in good locations across ContinentalEurope. The immediate deal pipeline stretches from Stockholm toMadrid and includes three properties already under contract and twoothers in due diligence. Overall, these buildings would generatesome €20 million in rent, with a blended net yield over 6%per annum.”
The fund has €160m of equity already committed by NorwichUnion Life and affiliates of LaSalle, and will be 50% geared.
For further information pleasecontact:
Telephone: 0207 8098 618
Morley Fund Management
Notes to editors:
The fund is subject to final regulatoryapproval.
LaSalle Investment Management
LaSalle InvestmentManagement, Inc, a member of the Jones Lang LaSalle group (NYSE:JLL), is a leading global real estate investment manager, withapproximately US$34 billion of assets under management. LaSalleInvestment Management is active across a range of real estatecapital and operating markets including private and public, debtand equity.
Further information about LaSalle Investment Management can befound at www.lasalle.com
Morley Fund Management
Morley FundManagement Limited is the UK-based asset management business ofAviva plc. Firms within the Morley group of companies manage £156bnfrom offices around the world as at 28 February 2006. The propertyteam manages in excess of £23 billion of UK and European propertyassets, making Morley the largest property fund manager in Europe(*OPC, May 2006 and Euro Property/ INREV, May 2006).
Morley Property Awards
- 2006, Property Fund Manager of the Year, Pensions ManagementAwards
- 2006, Property Fund Manager of the Year, Property WeekAwards
- 2006, Outstanding Company of the Year Award, CEE Real EstateQuality Awards
- 2006, Investor of the Year Award, CEE Real Estate QualityAwards
- 2005, UK Pensions Awards Property Fund Manager of theYear
- 2004, Property Fund Manager of the Year, Property WeekAwards
The property team consists of over 70 investment professionalsand manages a range of funds on behalf of institutional, pensionand retail clients. Morley has been at the forefront of innovationin property fund management and has launched eleven specialistsector based funds with partners, including the Jersey-based UnitTrusts: Igloo Regeneration Fund, Quercus Healthcare Property, TheJunction and The Mall.
Further information about Morley Fund Management can be found atwww.morleyfm.com