LaSalle Investment Management and Morley Fund Management have splashed out €325m (£214m) to buy five properties in Paris, Madrid, Stockholm and Germany for the Encore-Plus Fund.
The five assets include an E85m (£56m) office building in Liljeholmen, Stockholm; an E42m (£27.6m) shopping centre in Trier, Germany; the E40m (£26.3m) Alcampo office headquarters in Madrid; and an E53m (£35m) mixed retail and office building in Paris. The fifth property acquisition, which has changed hands for around E105m (£69.1m), is subject to confidentiality.
Gil Bar, fund manager for Encore-Plus at Morley Fund Management, said: ‘Since May 2006, Encore-Plus has raised nearly E250m (£165m) of equity, creating a gross buying power of almost E500m (£329m). Moreover in the eight months from the launch of the fund to the end of December 2006, Encore-Plus 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-Plus, added: ‘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. Given the continued interest from investors in Encore-Plus, we are looking forward to keeping up this pace of acquisitions with a target GAV of around E650m (£428m) by the end of 2007.’