LaSalle Investment Management has made its second acquisition in Germany for French public service additional pension scheme, L’Etablissement de Retraite additionnelle de la Fonction Publique (ERAFP).
The acquisition is part of a 10-year mandate by French public sector pension fund ERAFP to invest in core and core-plus real estate.
ERAFP is to increase its real estate allocation progressively from its current level of 4% this year, and is currently mulling adding infrastructure investments to the overall asset mix.
The fund – L’Etablissement de Retraite Additionnelle de La Fonction Publique – has been expanding its geographical allocation to property since 2014.
Linda Yam, investment executive within real estate at ERAFP, last year told IPE Real Estate that the fund expects its real estate allocation to grow progressively over the medium term.
Besides Germany, France and the Czech Republic, where it invested in June, ERAFP has also made real estate investments in Finland, Spain, Sweden and the UK.
Torsten Bischoff, head of German acquisitions at LaSalle, said the firm has a strategy to invest in “high quality and sustainable properties with potential to develop”.
“The Hamburg market is of particular importance for such investments; due to its dynamic market activities and strong fundamentals, it often provides attractive opportunities.”
Bischoff said LaSalle is aiming to increase its Hamburg stock over the next 18 to 24 months.
The 5,700sqm property was sold by Norddeutsche Grundvermögen and has been refurbished.
LaSalle said 75% of the asset has been let to tenants from a range of industries.