LaSalle looks to Aviva Investors for double acquisition

LaSalle Investment Management has announced an agreement to acquire Aviva Investors’ Real Estate Multi-Manager (REMM) business.

The deal, which will also see global investment manager LaSalle take over the Encore+ fund, is expected to complete by the end of the year.

REMM has $7bn of assets under management. Following the acquisition, LaSalle will become one of the top five biggest non-listed indirect real estate investment managers with assets under management of $10bn.

The division will be led by Ed Casal, who is currently CEO of real estate at Aviva and co-founder of the company’s Global Indirect Real Estate business. Mr Casal will be based in New York.

LaSalle and Aviva have joint managed Encore+, an open-ended Continental European real estate fund, for 11 years. LaSalle will become its sole manager, with chief investment officer David Ironside appointed fund manager.

Jeff Jacobson, global CEO at LaSalle Investment Management, said: “A strong multi-manager capacity has become increasingly important to LaSalle’s clients and our global footprint and expertise provide a solid foundation to strengthen the incoming global indirect capabilities.

“This will enhance our capabilities to offer comprehensive integrated investment solutions across the risk spectrum in third party fund investing, joint-ventures and co-investments.”

Aviva Investors CEO Euan Munro commented: “This deal makes sense for both parties, as well as clients in the REMM business and Encore+.

“We will now focus our efforts on being a direct operator in our chosen markets in Real Assets, which is a strategic priority for our business.”