US-based LaSalle makes $1.07b first close of latest Asia buyout fund

Singapore. Photo: Unsplash

US real estate investment manager LaSalle Investment Management has made the first close for its latest Asia-focused closed-end private equity real estate fund at $1.07 billion, according to a meeting document from one of its limited partners.

The fund, LaSalle Asia Opportunity VI (LAO VI), is looking to raise $1.5 billion of commitment with a target net IRR of 18%. over an eight-year fund life, revealed US pension fund Arkansas Teacher Retirement System. The pension approved a $50 million commitment to the vehicle.

The initial close comes more than three years after LaSalle closed the predecessor fund at over $1.1 billion in April 2018, exceeding its $750 million target. The capital was secured from 20 external institutional investors from Asia, Europe, the Middle East, and the US.

LAO VI is the sixth fund of the LaSalle Asia Opportunity (LAO) Fund Series. With the first fund launched in 2001, the LAO Fund Series has invested $4.1 billion of equity into 174 assets, of which 149 assets have been realised, generating gross IRR/EM returns of 15%/1.4x.

Since LAO IV, LaSalle has restructured the Asia Pacific team and business to enhance investment strategies, improve risk management, and increase alignment of interest with better governance structures.

LAO VI will continue the investment strategy of its predecessor funds by creating core assets through repositioning, development, and active asset management with a focus in Australia, Japan, China, South Korea, Hong Kong, Singapore, Taiwan, New Zealand, and Macau.

It focuses on office, retail, residential, and hospitality assets and developtocore strategies such as modern logistics facilities.

Last month, the US real estate investment manager announced the final close for its debut China-focused logistics fund, LaSalle China Logistics Venture (LCLV), and its co-investment vehicle, with total committed capital of $972 million.

LCLV secured capital from a diverse group of new and existing global investors across North America, Europe, the Middle East, and Asia, said LaSalle.

The final close of LCLV and its co-investment vehicle followed LaSalle’s announcement of the first close at $681 million in April 2020. LaSalle said that the fund is expected to have an investment capacity of up to $2.5 billion.

Globally, the Chicago-based firm, which is an independent affiliate of property services major JLL, recorded about $73 billion of assets in private equity (PE), debt, and public real estate investments as of the second quarter of 2021.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.