Global real estate investment manager LaSalle Investment Management (LaSalle) has completed the acquisition of a fully pre-let senior living property in central Toulouse through a forward-funding agreement with the French developer Cogedim.
Financial details were not disclosed.
The transaction has been made on behalf of Encore+, LaSalle’s flagship pan-European fund, and represents the fund’s first investment in the senior living space.
The acquisition also represents LaSalle’s first investment in senior living in continental Europe and builds upon its expertise in and exposure to the sector in the UK.
Beverley Kilbride, head of France and head of transactions & asset management Europe at LaSalle, said: 'This is a landmark transaction for LaSalle as we drive forward our strategy to increase our footprint in alternative sectors across Europe.
'The market fundamentals are very strong in France, and the combination of long-term demographic changes and the shifting needs of senior services residences has fuelled strong investor demand in the senior living sector over recent years.
'We look forward to strengthening our portfolio in this area.'
Quai Saint-Pierre, the senior living property located in the Capitole district of Toulouse, will comprise three connected buildings with over 4,500 m2 in total area, including 89 flats and 43 car parking units.
The property will offer amenities across almost 700 m2 of communal spaces, including a restaurant, swimming pool, TV room, library, fitness room, terraces and gardens.
LaSalle's newly-established Europe-wide living and hospitality asset management platform is currently responsible for £3 bn (€3.6bn) of assets, with 13,000 beds across student housing, build-to-rent, senior living, healthcare and hotels.
Cogedim Club, the developer’s in-house and senior living management operator, will manage the asset following completion of construction, which is scheduled for Q2 2024.
David Ironside, fund manager for Encore+ at LaSalle, commented: 'This forward-funding deal is a significant milestone, marking our first step into the senior living sector.
'This forms part of our strategy to increase exposure of Encore+ to alternative property sectors, diversifying our existing asset portfolio. The senior living market is growing as citizens increasingly look to avoid social isolation later in life and reside in higher-quality, fit-for-purpose homes, which fully provide for their needs.
'Given the long-term letting and its pre-let status, the asset will provide secured and sustainable income for the fund into the future.'
LaSalle was advised on this transaction by Reed Smith, KPMG, ETYO and CBRE. JLL capital markets residential advised the vendor.
