Multi-asset manager London & Capital has announced that it has appointed Jones Lang LaSalle as sole managing agent for the portfolio of properties held in its German Real Estate Fund.
London & Capital announced the acquisition of two more prime retail parks for the Fund. The holdings, purchased at €17.5 million, are leased to high quality tenants including Edeka and Media Markt. The properties were acquired off market and present excellent capital and rental growth opportunities.
Ralph Weichelt, Country Fund Manager for Germany in London & Capital's Real Estate Division, said:
"Despite the 3% rise in VAT, being introduced this month, the recovery is expected to continue. Sustainable rises in wages mean consumers will spend more and we believe the plays for quality holdings in the Retail space will be huge this year. Since there is such a shortage of prime retail outlets in Germany, we are really excited to have secured two properties with such long leases and in such excellent locations."
The focus of the team is on sourcing new deals of the highest calibre to match increasing investor demand. The Company's decision to sign up Jones Lang LaSalle as a managing agent for its German properties highlights the importance it places on the local "Dach und Fach" rules. Unlike the UK property market where a fully repairing insurance falls to the tenant, a landlord in Germany is responsible for the roof and structure of a building. Weichelt understands the significance of having a team of experienced agents on the ground, whose sole responsibility is the maintenance and administration of their holdings.
Iain Keys, Director of Real Estate at London & Capital, adds:
"We have aligned ourselves with one of the largest property managers in Germany and the reputation and scope of services offered by Jones Lang LaSalle was a major contributing factor in our decision to appoint them. Our portfolio is spread throughout Germany, so their network of offices and experience will be invaluable as we start to invest in multi-let buildings."
Commenting on the appointment, Markus Reinert, International Director and a member of the German Board of Jones Lang LaSalle, said:
"We are delighted to be managing the fast growing property portfolio of the German Real Estate Fund on behalf of London & Capital. The experience we have built servicing the specific needs of numerous international investors will enable us to deliver the highest business standards for London & Capital's properties."
The Company expects to see assets in its German Real Estate Fund push through €340 million during the first quarter, and with the exciting pipeline it is building in Germany, 2007 looks set to be an even busier year for London & Capital's Real Estate team.
Source: London & Capital