Article date: 24 January 2007
LaSalle Investment Management and Morley Fund Management todayannounced that they have acquired or contracted to acquire a totalof five assets in Paris, Madrid, Stockholm and Germany, creating asolid base for the portfolio of the Encore+Fund.
Gil Bar, fund manager for Encore+ at Morley FundManagement, said: "Since May 2006, Encore+ has raisednearly €250 million of equity, creating a gross buying powerof almost €500 million. We have made good progress ininvesting this capital and the five properties that we haveacquired represent a net acquisition price of over €325million.
"Moreover in the eight months from the launch of the fund to theend of December 2006, Encore+ generated net returns forits investors of 7.5%, against a target of 8.5% per annum."
Andy Watson, head of LaSalle's acquisitions programme forEncore+, said: "The seed portfolio created over the lastyear is a good reflection of what we are seeking to create -sustainable income in good locations in the major growth markets ofContinental Europe where we can play to our strengths by addingvalue through LaSalle's asset management teams. Given thecontinued interest from investors in Encore+, we arelooking forward to keeping up this pace of acquisitions with atarget 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 anexcellent location adjacent to the CDB, this 40,000 m2 building isan income-producing core-plus investment in one of the fund’smajor target markets for offices.
2. Shopping centre: Allencenter, Trier,Germany
Purchased for c.€42 million, this 22,600 m2 property is welllocated next to the main train station and principal car park ofTrier. Effective asset management, as well as an anticipateddownward yield shift due to market restructuring in Germany providescope for income and capital growth.
3. Office building: La Vaguada – Alcampo HQBuilding, Madrid, Spain
Acquired for c.€40 million, this 10,300 m2 office building isthe headquarters of the Alcampo hypermarket group (part of Auchan),and is next to their flagship store which anchors Spain’sbiggest mega-regional shopping centre. The asset offers anexceptionally secure income stream in the short term, and offersfurther benefits from longer term planned initiatives.
4. Mixed use Office/Retail building: Astorg-Boétie, 8thArr, Paris, France
Acquired for c.€53 million this 6,265m2 property is a classicmulti-let, mixed-use Haussmannian style building in the heart ofthe Paris CBD, providing core income, with indexation and realrental growth. Strong market fundamentals are expected todrive rental growth going forward.
For more information please contact:
Andy Watson, LaSalle Investment Management +33 (0)1 56 43 4687
Strahan Wallis, Morley Fund Management, +44 (0) 20 7809 8618
Notes to editors:
About the Encore+Fund
Encore+ is a monthly priced and dealtopen-ended fund, set up by LaSalle Investment Management and MorleyFund Management. The fund is investing across the European EconomicArea, excluding the UK, building a balanced portfolio of commercialproperty with a "core plus" orientation.
The fund is an unregulated collective investment scheme for thepurpose of the UK Financial Services and Markets Act. Investmentinto the fund is therefore available only to intermediate customersand those to whom the scheme can be promoted under the Act. Asthis is an unregulated collective investment scheme all or most ofthe protections provided by the UK regulatory system do not applyand compensation under the Financial Services Compensation Schemewill not be available. The information within this pressrelease should not be regarded as constituting an offer toinvest.
About LaSalle Investment Management
LaSalle Investment Management, Inc, a member of the Jones LangLaSalle group (NYSE: JLL), is a leading global real estateinvestment manager, with approximately US$40.6 billion of assetsunder management. LaSalle Investment Management is active across arange of real estate capital and operating markets includingprivate and public, debt and equity.
For more information, visit www.lasalle.com
About Morley Fund Management
Morley FundManagement Limited is the UK-based asset management business ofAviva plc. Firms within the Morley group of companies manage£162 billion or €239 billion from offices around the world asat 30 September 2006.
Morley manages both institutional and retail funds. It also acts asinvestment manager for a range of retail investment funds, marketedin the UK under the Norwich Union brand and in Europe under theAviva brand.
The property team manages in excess of £27 billion of UK andEuropean property assets, making Morley the largest property fundmanager in Europe.
- 2006, Best Performing Insurance Company Life Fund, IPF/EstatesGazette Property Portfolio Performance Awards (three years >£1bn)
- 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 Manager of the Year
- 2004, Property Week Fund Manager of the Year Award
- 2003, Property Fund Manager of the Year, Pensions ManagementAwards
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: Igloo RegenerationFund, Quercus Healthcare Property, The Junction and TheMall.