A fund co-managed by Aviva Investors and LaSalle Investment Management, Encore+, has purchased an office tower in Eindhoven in the Netherlands for around €50 mln.
The vendor was not disclosed.
The tower, dubbed Kennedytoren, comprises 20,372 m2 over 23 floors. Located in the centre of Eindhoven, it holds a BREEAM 'Very Good' rating. The asset is 100% let to a range of tenants including Deutsche Bank, HERE Europe and Taylor Wessing.
'This acquisition represents a strong fit for Encore+, particularly as we continue to increase exposure to BREEAM-rated properties across Europe,' commented Jeffrey King, fund manager for Encore+ at Aviva Investors. 'With falling supply, low vacancy and a growing local economy, Eindhoven represents a growth location in the Netherlands and has become one of the most important technological regions in Europe. The asset offers stable income and strong potential for future valuation.'
Added David Ironside, CIO and investment manager for Encore+ at LaSalle Investment Management: 'The fund already owns one Dutch Office in the Amsterdam South Axis (Eurocentre II, acquired in 2016) which has performed extremely well for the fund to date and together with the Venlo logistics asset, Kenndeytoren provides Encore+ with a diversified exposure to the Dutch market.'
Encore+ is a pan-European open-ended Core+ fund, co-managed by Aviva Investors as fund manager and LaSalle Investment Management as asset and transaction manager, which was established 11 years ago.
It currently has more than €1.3 bn of assets under management. As of 30 June 2017, the three-year annualised return for the fund is more than 9.2%.
