Morley Fund Management, an arm of Aviva, and LaSalle Investment Management have teamed up to launch 'Encore+', a new continental European property fund.
Encore+ is a monthly priced and dealt, open ended fund. It will invest across the European Economic Area (EEA), excluding the UK, and aims to assemble a balanced portfolio of commercial property with a core plus orientation. An element of the fund will be held in property shares, bonds and cash for liquidity.
The fund has already contracted on three properties, including a shopping center in Trier, Germany, an office park in Stockholm, and an office building in Madrid with a total value of approximately E172 million. A further E150 million of acquisitions are in exclusivity.
The fund follows the established governance structure of Morley’s UK and continental European specialist funds with Morley having overall fund management responsibilities, and LaSalle responsible for procurement and asset management. The fund is principally targeted at institutional investors.
Encore+ gives investors access to the core strengths of two property heavyweights. Morley is the largest property fund manager in Europe and has more than £7.2bn of open ended property funds under management (as at March 31 2006). The extension of our open ended funds business into continental Europe is a natural progression for us, says Ben Stirling, head of European property funds at Morley.