Investment Management has acquired a Munich office portfolio for 鈧�169m for its pan-European core real estate fund.
The ElseBella portfolio, which includes properties in the Westend and Arabellapark districts of Munich, was sold by AXA Investment Managers鈥揜eal Assets.
The open-ended Encore+ fund, for which LaSalle assumed full control in November, now has a net asset value of 鈧�2.1bn, according to a source with knowledge of the matter.
David Ironside, fund manager of Encore+, said LaSalle was focusing on office markets in Europe 鈥渨here we can get significant rental growth over time鈥�, especially those that produce 鈥渧ery limited new supply鈥� of new buildings.
鈥淢unich, of all the markets, is probably the best [example] on a long-term, basis because the supply of land is so low, and because the height restrictions are so strict it basically means it is very difficult to create new space.鈥�
The portfolio acquired includes two buildings encompassing 25,000sqm of space in Munich鈥檚 Westend district, a major office location adjacent to the central business district (CBD).
The other asset, Bella, is a 15,000sqm, seven-storey building in Arabellapark, northeast of the CBD.
LaSalle said both submarkets were 鈥渟ubject to particularly high take-up levels and limited immediate and future supply鈥�.
