LaSalle, the investment arm of Jones Lang LaSalle, has announced the launch of a Continental European closed-end opportunistic fund that will use leverage to create a buying power of EUR 4-5bn.
LaSalle, the investment arm of Jones Lang LaSalle, has announced the launch of a Continental European closed-end opportunistic fund that will use leverage to create a buying power of EUR 4-5bn.
Continental Europe, LaSalle said, is home to some of the world's largest, most active property markets offering strong investment prospects, with cities such as Paris, Munich, Stockholm, and Hamburg continuing to see strong take-up. At the same time, restrictive zoning regimes and a limited supply pipeline will result in upward pressure on rents for grade A space.
The company said that the overall economic outlook for Continental Europe is positive, with a stable interest rate environment and an improving labour market, which has resulted in unemployment being at the lowest rate for 25 years across the Eurozone, at just 7.1%. Meanwhile industrial production in the Eurozone remains strong, in spite of the current global slowdown.
LaSalle said market volatility caused by the credit crunch and subsequent market adjustments will offer investors in Continental European property the opportunity to maximize returns. Simon Marrison, co-head Europe at LaSalle, said: 'We believe risk-pricing has returned to the market and that the strong take-up of top quality properties in Continental Europe will continue to drive good levels of rental growth. In addition to developing high quality office space and repositioning existing poorer stock, we see considerable demand for sustainable buildings. We also see growing demand in the hospitality sector, particularly across Central and Eastern Europe.
'There are also investment opportunities to capitalize on the trend towards sale-and-leasebacks across the Continent, particularly as corporate occupiers seek to finance their expansion.'
