Two of the leading European property fund managers, Morley Fund Management and LaSalle Investment Management have teamed up to launch Encore+, a new continental European property fund.
Two of the leading European property fund managers, Morley Fund Management and LaSalle Investment Management have teamed up to launch Encore+, a new continental European property fund.
Encore+ is a monthly priced and dealt, open ended fund. It will invest across the European Economic Area (EEA), excluding the UK, and aims to assemble a balanced portfolio of commercial property with a “core plus” orientation. An element of the fund will be held in property shares, bonds and cash for liquidity.
The fund has already contracted on three properties, including a shopping centre in Trier, Germany, an office park in Stockholm, and an office building in Madrid with a total value of approximately €172 million. A further €150 million of acquisitions are in exclusivity.
The fund follows the established governance structure of Morley’s UK and continental European specialist funds with Morley having overall fund management responsibilities, and LaSalle responsible for procurement and asset management. The fund is principally targeted at institutional investors.
Ben Stirling, head of European property funds, Morley Fund Management, said: “Encore+ gives investors access to the core strengths of two property heavyweights. Morley is the largest property fund manager in Europe* and has more than Ł7.2bn of open ended property funds under management (as at 31 March 2006). The extension of our open ended funds business into continental Europe is a natural progression for us.
“Allied to LaSalle’s strong local presence and track record across the region we believe that Encore+ will appeal to investors seeking a balanced and relatively liquid exposure to European property, with its attractive diversification and return characteristics. This new fund reflects our continuing commitment to growing our presence in Europe.”
Jeff Jacobson, regional CEO Europe, LaSalle Investment Management, said: “Morley is a manager we have known and respected for a number of years both as a partner in some areas of our business and as a competitor in other areas. We are very excited about working together with Morley on the Encore+ fund where we are combining the strengths of both organisations to create a unique opportunity for investors.
“The fund’s first assets are a good reflection of the style of portfolio we will be creating. They offer sustainable retail and office income in good locations across Continental Europe. The immediate deal pipeline stretches from Stockholm to Madrid and includes three properties already under contract and two others in due diligence. Overall, these buildings would generate some €20 million in rent, with a blended net yield over 6% per annum.”
The fund has €160m of equity already committed by Norwich Union Life and affiliates of LaSalle, and will be 50% geared.
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For further information please contact:
Strahan Wallis
Telephone: 0207 8098 618
Corporate Communications
Morley Fund Management
Notes to editors:
The fund is subject to final regulatory approval.
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$34 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.
Further information about LaSalle Investment Management can be found at www.lasalle.com
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 Ł156bn from offices around the world as at 28 February 2006. The property team manages in excess of Ł23 billion of UK and European property assets, 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 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 Fund Manager of the Year
- 2004, Property Fund Manager of the Year, Property Week 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 the Jersey-based Unit Trusts: Igloo Regeneration Fund, Quercus Healthcare Property, The Junction and The Mall.
Further information about Morley Fund Management can be found at www.morleyfm.com