Encore+ acquires 70,800 sq m logistics platform near Paris
Encore+, an open-ended Continental European real estate fund, has acquired a 70,800 sq m logistics platform located in Fontenay-Trésigny in the Paris region.
The site, which has already been leased to FM Logistics, is the fund’s sixth acquisition to date in France.
The fund is co-managed by Aviva Investors as fund manager and LaSalle Investment Management as asset and transaction manager.
The warehouse is located on the North-South logistics backbone in one of the Paris region’s major submarkets, the N4-Châtres zone, and is well-connected by numerous main motorways. This logistics platform offers a solution for those seeking to centralise their operations on the outskirts of major cities in large-scale warehouses, with a wealth of courier freight in place to handle ‘last mile’ logistics.
The acquisition took the form of a company buyout from AG Real Estate France via an ‘OPCI’ investment vehicle (French professional real estate collective investment scheme) newly created on behalf of Encore+.
Encore+ has a 10+ year track record as a diversified, open-ended Continental European real estate fund which aims to deliver stable and growing income alongside long-term capital appreciation, from an actively-managed portfolio. It was recently, for the second time, ranked by MSCI as the top performing fund on a three-year rolling basis in the IPD Pan-European Property Funds Balanced Funds Index (PEFPI). The three-year return for the fund is more than 9.5 per cent (as at 31 December 2016).
Jeffrey King, fund manager of Encore+ at Aviva Investors, says: “We are pleased to have completed another acquisition that is accretive to the fund’s risk-return profile. As with the other logistics holdings in the fund, this asset is in a strategically important and sustainable logistics zone in Europe, with a strong tenant covenant providing security of income. Encore+ continues to enjoy strong growth through the responsible and strategic deployment of capital, while maintaining very strong returns for our investors.”
Ian Williamson, investment manager of Encore+ at LaSalle Investment Management, says: “This transaction illustrates the strategy of Encore+; where we believe the combination of income return and potential for capital growth is attractive. It also shows that we are able to secure properties with strong fundamentals given our direct relationships, with owners such as AG RE.”