Encore+ enters agreement with JMG to develop two logistics sites in France
PARIS (January 15, 2018) — Encore+ has entered into an agreement with French developer JMG to develop two logistics sites in France; the first is a development contract on a site in L’isle D’Abeau in the Southeast of France; the second is the signature of Protocol on a site in Tigery in the Sénart Logistics hub, 37 km southeast of Paris.
The logistics area in L’isle D’Abeau is located 30km east of Lyon, on the French ‘backbone’ that links Lille and Marseille. At 2.1 million m2, it is the largest logistics area in France and benefits from excellent connectivity to the main French markets as well as major European countries, in particular Italy and Switzerland.
The planned property in Tigery will be located at the heart of the business park Parc des Vergers. This logistics hub is the largest in the Paris region and the second largest in France, comprising 1.4 million m2 and benefitting from excellent road access to Paris, notably the frontage on the ‘Francilienne’, the highway that circles Paris, and is close to Orly airport.
The interest of investors for French industrial assets has been continuously growing since 2009. It reached a peak in 2016 with €2.8 billion, making France the third most important investment market for industrial assets after the U.K. and Germany.
Jeffrey King, Fund Manager for Encore+ at Aviva Investors, said: “We see these deals as great opportunities to access well-located logistics sites in France, which is a core focus for Encore+. There is a growing demand for logistics platforms against the backdrop of an increasing urban population and changing consumption patterns. This will therefore improve the income and property diversification of our portfolio as we continue to grow the fund.”
David Ironside, CIO for Continental Europe and Investment Manager for Encore+ at LaSalle Investment Management, said: “I am delighted that we have acquired these unique Grade-A logistics sites in excellent locations in France. The sites have strong fundamentals with solid take-up, low vacancy rates and scarcity of quality supply. Such a measured leasing risk will provide good portfolio diversification through a build-to-core strategy.”
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. The Fund has a successful 11-year track record, delivering stable and growing income alongside long-term capital appreciation, from an actively-managed portfolio. It continues to enjoy significant momentum in both capital raising and deployment, with total assets of more than €1.4 billion under management.* The three-year annualised return for the Fund is more than 9.0% (as at 31 October 2017).
About LaSalle Investment Management
LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $60.5 billion as of Q3 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com.
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