LaSalle Investment Management expands its real estate empire.
The company announced on Wednesday that it had agreed to buy the multi-manager property business of rival Aviva Investors, in a deal expected to close by the end of the year. The addition of the Aviva business, which has $7 billion in assets under management, will make LaSalle one of the world’s top five unlisted indirect real estate managers, according to the announcement.
As part of the deal, Ed Casal, chief executive officer of Aviva’s real estate business, will join LaSalle, where he will oversee the multi-manager division. Casal will also join LaSalle’s global management committee.
“Strong multi-manager capability has become increasingly important to LaSalle clients,” LaSalle CEO Jeff Jacobson said in the company’s statement. He added that the acquisition would give LaSalle stronger capabilities for investing in third-party funds, joint ventures and co-investments.
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For its part, Aviva said it would focus on direct operations within real assets, according to a statement from CEO Euan Munro.
In addition to the multi-manager business, LaSalle said he also bought Aviva’s share in Encore+, a 1.7 billion euro ($2 billion) open-ended fund investing in real estate in Europe. continental. Aviva and LaSalle had jointly managed the fund for eleven years.
“We have always viewed Encore+ as our flagship diversified open-end fund in continental Europe and I am delighted that we are becoming the sole manager of the fund,” said Jacobson.
LaSalle had about $60 billion in private and public equity and debt investments in the first quarter. The company’s unlisted indirect real estate business will grow to around $10 billion after the Aviva deal closes, according to the announcement.