LaSalle Investment Management (IM) has acquired a €128 million office building in central Paris on behalf of its €840 million pan-European core-plus investment vehicle Encore+.
The 69 Haussmann office asset, which is part of a wider complex called Haussmann Paris, comprises more than 72,000 square feet of office space, across eight floors, and is home to high-profile businesses such as Rabobank and UBS.
Encore+ is a diversified and open-ended, pan-European real estate fund, aimed at global institutional investors, which has been co-managed by LaSalle IM, which acts as fund manager, and Aviva Investors, which acts as asset manager, for almost a decade.
“The acquisition of 69 Haussmann highlights LaSalle’s ability to identify assets in the core segment in central Paris, in need of development. This has completed a great year for our team in France which has acquired over €700 million worth of assets to date,” said Karim Habra, head of France at LaSalle IM.
“This acquisition, which is the largest that we have made this year on behalf of Encore+, matches all of the criteria for the Fund strategy; this is to acquire in longstanding quality locations, and where active asset management will generate outperformance, driven primarily by income going forward,” said Ian Williamson, Encore+ portfolio manager at LaSalle IM. “We have progressed substantially towards our year-end target of €1 billion assets under management and I look forward to announcing further activity in due course,” he added.
Since its launch in 2007, LaSalle IM has acquired assets in France, Germany, Sweden, Spain, Poland and The Netherlands for the Encore+ portfolio, which currently has a gross asset value of €840 million.
Encore+ was recently ranked by MSCI as the top performing fund on a three-year rolling basis in the IPD Pan-European Property Funds Balanced Funds Index (PEFPI), which stated that the five-year return for the fund was 7 percent as of June 30.
The last two publicized deals made on behalf of the fund were in The Netherlands and Poland. In May, LaSalle IM acquired the 112,000-square-foot Eurocenter II office building in Amsterdam’s South Axis, the city’s central business district, from Stichting Philips Pensioenfonds for an undisclosed sum. Meanwhile, in November 2015, the firm made its debut purchase in Central and Eastern Europe on behalf of Encore+, with the acquisition of the 195,000-square-foot Futura Retail Park in Wroclaw, Poland’s second most affluent city, for around €27 million.