LaSalle Investment Management’s open-ended continental Europe core real estate fund has moved into the alternatives market with the purchase of two hotel properties.

The manager’s €2.5bn Encore+ fund has paid an undisclosed sum to acquire the properties in Munich from Commerz Real.

LaSalle said the acquisition is the first hotel investment for Encore+, following its strategy to further diversify the fund by acquiring alternative assets, “notably leased hotels in the strongest Western European cities”.

David Ironside, fund manager of Encore+, LaSalle Investment Management, said: “Munich is a leading European business and tourist hub. The site has excellent public transport and an outstanding track record.

“Munich has higher occupancy rates than the average German budget market and is growing rapidly. Our investment adds both diversity and exposure to Munich’s hotel market, offering returns to complement the portfolio.”

Andreas Wesner, head of investment for Germany at LaSalle Investment Management, said: “This is our first move into the alternatives market, and an important acquisition for Encore+.

“The assets have a particularly resilient track record in a hotel market benefiting from strong tailwinds, where the key performance metrics already surpass the national average.”