Encore+ has made another acquisition in the Netherlands, with the purchase of the office tower Kennedytoren in Eindhoven for c. €50 million.
Encore+ is a pan-European open-ended Core+ fund, co-managed by Aviva Investors as Fund Manager and LaSalle Investment Management as Asset and Transaction Manager. The fund continues to enjoy significant momentum in both capital raising and deployment, with total assets of more than €1.3 billion under management.*
Kennedytoren is located in the city centre of Eindhoven, directly adjacent to the main railway and bus station and within walking distance of the main shopping area. The property offers ca. 20,000 sqm lettable space spread over 22 floors. Its architecture and high quality technical specifications provide a future-proof and sustainable workplace, which is underlined by a BREEAM ‘Very Good’ rating. Kennedytoren is leased to a multiple tenant base, with HERE Europe, Taylor Wessing, and Deutsche Bank as key occupiers. Eindhoven itself is a growing technological centre and was recently rated by the OECD as the most innovative city in the world based on patent intensity.
Encore+ has a successful 11-year track record as a diversified, open-ended Continental European real estate fund, delivering stable and growing income alongside long-term capital appreciation, from an actively-managed portfolio. The three-year annualised return for the Fund is more than 9.2% (as at 30 June 2017).
Jeffrey King, Fund Manager for Encore+ at Aviva Investors, said: “This acquisition represents a strong fit for Encore+,,particularly as we continue to increase exposure to BREEAM-rated properties across Europe. With falling supply, low vacancy and a growing local economy, Eindhoven represents a growth location in the Netherlands and has become one of the most important technological regions in Europe. The asset offers stable income and strong potential for future valuation.”
David Ironside, CIO and Investment Manager for Encore+ at LaSalle Investment Management, said: “The Fund already owns one Dutch Office in the Amsterdam South Axis (Eurocenter II, acquired in 2016). This has been an extremely successful acquisition for the Fund to date and together with the Venlo logistics asset, Kenndeytoren provides Encore+ with a diversified exposure to the Dutch market.”
LaSalle was advised by Savills, Weebers Vastgoed Advocaten, and Drees & Sommer. JLL was instructed to manage the sales process on behalf of the vendor. Taylor Wessing provided legal advice.
* Source: Aviva Investors/LaSalle