LaSalle Investment Management and Morley Fund Management have purchased a mixed-use portfolio of five properties in Paris, Madrid, Stockholm and Germany for EUR 325 mln. The transaction value reflects a net initial yield of 5.8%.
LaSalle Investment Management and Morley Fund Management have purchased a mixed-use portfolio of five properties in Paris, Madrid, Stockholm and Germany for EUR 325 mln. The transaction value reflects a net initial yield of 5.8%.
The portfolio, acquired on behalf of the Encore+ fund, includes a 22,600 m2 shopping centre in Allencenter, western Germany, (EUR 42 mln), a mixed-use office/retail property in the eighth arrondissement of Paris (EUR 53 mln), office buildings in Stockholm (EUR 85 mln) and an AlCampo office HQ in Madrid (EUR 40 mln). The details of the fifth property acquisition for about EUR 105 mln were not disclosed.
The Encore+ fund has raised close to EUR 250 mln of equity since May 2006, 'creating a gross buying power of EUR 500 mln,' Gil Bar, Encore+ manager at Morley, said. 'Moreover in the eight months from the launch of the fund to the end of December 2006, Encore+ generated net returns for its investors of 7.5%, against a target of 8.5% per annum,' Bar added.
Encore+ is a Continental European open-ended fund investing in a diversified portfolio of commercial property across Continental Europe. It aims to have a minimum of EUR 1 bn under management within three years.
