LaSalle contracts €1.6 billion in commercial real estate transactions in Continental Europe
MUNICH (February 19, 2019) — LaSalle announces that the value of its actively managed assets under management in Continental Europe has risen to €7 billion, representing a year-on-year net increase of €1 billion. The German KVG business currently at €1.18 billion AUM, having grown by 23 per cent in 2018.
LaSalle operates three distinct Core, Core+, and Value-Add investment strategies in Continental Europe, making direct private-equity investments in commercial property on behalf of institutional clients whose capital is managed across nine active mandates, including its flagship pan- European open-ended Fund, Encore+. The German market accounted for €330 million of LaSalle’s Continental European investments in 2018, including the acquisition of the ElseBella office portfolio in Munich for €169 million by Encore+, maintaining the upward trajectory in the value of LaSalle’s annual investments in Germany. In the French market, in 2018 LaSalle passed the threshold of having invested €1.5 billion in properties over the past three years, including an iconic core retail asset in Toulouse for E-REGI for €24 million.
Having already signed a record value of new leases across its Continental European portfolio in 2017, LaSalle saw a year-on-year increase of over 200% of rent generated. With office supply remaining scarce and e-commerce continuing to drive occupier demand for logistics properties in the firm’s target Continental European markets, LaSalle expects to achieve further rental growth across its portfolio while continuing to acquire office and logistics assets in 2019.
Philip La Pierre, Head of Continental Europe at LaSalle Investment Management, said: “This has been a record year for our business with strong performances across all of our accounts and are starting the year strong with a secure pipeline of €500 million. Moreover, we have effectively deployed capital for our clients across various sectors on the Continent and are confident that localised real estate markets will remain strong in 2019 for further investment.”
In 2018, LaSalle assumed sole responsibility for the management of Encore+, the open-ended Continental European real estate fund focused on improving assets and creating growth by actively managing assets to deliver superior income returns, which had previously been jointly managed by LaSalle and Aviva Investors. Encore+ is part of MSCI’s Pan-Europe Property Funds Index (PEPFI) and was recently announced as the best performing fund in the Index for 2017 on both a one- and five-year basis. In addition, the LaSalle E-REGI European commingled fund recorded a substantial increase in its sustainability credentials last year, as measured by the 2018 Global Real Estate Sustainability Benchmark (GRESB), the global environmental, social and governance (ESG) benchmark for real assets.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, we manage approximately $71 billion of assets in private equity, debt and public real estate investments as of Q4 2020. The firm sponsors a complete range of investment vehicles including open- and closed-end funds, separate accounts and indirect investments. Our diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. For more information please visit www.lasalle.com and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.