Encore+ acquires Gravity office property in Luxembourg
Aviva Investors and LaSalle Investment Management have acquired the office building Gravity in Luxembourg, on behalf of the pan-European fund Encore+.
This is the first acquisition for Encore+ in Luxembourg.
Gravity is a modern and flexible office building, comprising approximately 12,500 square metres of lettable floor space, situated over six floors. It is located in the Kirchberg district of Luxembourg, which is between the Central Business District and the airport. It is positioned in a well-established office location, benefiting from good public transport which connects Kirchberg to the airport and to the Luxembourg train station in the city centre by bus, car and a new tramway which is set to open between 2017 and 2021.
The property is occupied by Commerzbank and Julius Baer, while Commerzbank is also the vendor of the building.
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 (PEPFI). The three-year return for the fund is more than 9.5 per cent (as at 31 December 2016). The fund is co-managed by Aviva Investors as Fund Manager and LaSalle Investment Management as Asset and Transaction Manager.
Jeffrey King, fund manager for Encore+ at Aviva Investors, says: “We are delighted as Encore+ continues to grow its portfolio in Continental Europe with its first acquisition in Luxembourg. The acquisition fits well with our strategy of investing in quality assets in attractive and sustainable European locations, and strengthens the geographic diversification of the portfolio.”
Ian Williamson, investment manager for Encore+ at LaSalle Investment Management, says: “Gravity demonstrates our excellent track record for quality acquisitions with above target forecast performance. It highlights our investment themes of investing in well-leased modern properties in core city locations at attractive pricing.”