LaSalle Investment Management and Morley Fund Management have announced the acquisition of a logistics property located in Magenta, Milan from Vailog S.r.l. The purchase was made on behalf of Encore+, a Pan-European open-ended core plus fund which launched in 2006 and is a collaboration between LaSalle and Morley. The purchase price amounts to approximately €31.5 million for the first phase of the property.
The logistics warehouse comprises approximately 34,000 m² of lettable area together with an extension option for a further 11,000 m². The property is fully let to Lindt & Sprungli for a long-term lease commencing at completion of the property, targeted for late August 2007.
Andy Watson of LaSalle, Head of Acquisitions for the Fund, said, "This investment provides both a new country and a new market for the Encore+ Fund. The property is a new, high quality logistics warehouse in an excellent location, and is in accordance with the strategy of the Fund, which is to purchase sustainable income in good locations. We are extremely pleased with the pace of acquisitions for the Fund to date, which continues to be matched by strong interest from investors in Encore+."
Gil Bar, Fund Manager, added, "This acquisition is exactly in line with the Fund's strategy to acquire income producing core plus assets in key European locations. We are delighted about the pipeline of further acquisitions which are currently in due diligence and which will enable the Fund to meet its investment targets for 2007. We plan to announce a flurry of new investments for the Fund towards the end of the summer. In addition, Encore+'s performance has been strong since launch last year and we have experienced continuous demand from new European investors."