LaSalle raises initial $681m for debut China logistics fund

Shanghai, China. Photo: Pen Tsai/unsplash

US-based real estate investor LaSalle Investment Management has so far raised $681 million for its debut China-focused logistics fund – LaSalle China Logistics Ventures LP – and its co-investment vehicle, according to media reports.

The China warehouse development and management fund was launched in 2019 and had secured $359 million in initial commitments, according to a filing with the US Securities and Exchange Commission.

The filing did not disclose the hard cap for the fund but LaSalle is understood to be seeking to raise up to $1 billion for the vehicle.

LaSalle has reportedly seeded the fund with two development sites in the Shanghai area – Kunshan and Jiaxing – and three other assets in Wujiang, Tianjin, and Huizhou.

The fund is the first dedicated logistics vehicle for China from the Chicago-headquartered investment manager, which has so far invested in the logistics space in the country via partnerships or other funds.

It received capital commitments from new and existing investors based in Asia, Europe, and the Middle East and will invest in first-tier and second-tier cities in key logistics regions such as the Yangtze River Delta, Bohai Bay, and Greater Bay in South China.

Mark Gabbay, LaSalle Investment Management’s Asia Pacific CEO, was quoted as saying that the launch of the fund was in response to the strong investor appetite for quality logistics assets. The initial close highlights the attractive returns available in the logistics sector in China, he added.

LaSalle has so far invested in the China logistics space through its other funds. It closed its LaSalle Asia Opportunity V fund at over $1.1 billion in 2018, exceeding the $750-million target announced at the time of the vehicle’s launch in August 2016.

The move to launch a dedicated fund comes over a year after LaSalle formed a $300-million joint venture with JD.com-backed developer China Logistics Property Holdings.

The alliance, which focused on acquiring and developing a network of logistics parks in the region, gave LaSalle certain pre-emptive rights to China Logistics Property’s logistics assets and developments.

The initial close of LaSalle’s logistics fund comes about a week after real asset investment management firm CBRE Global Investors and Australian logistics developer Logos Group reached the final close of their joint China-focused logistics fund at around $786 million.

The joint fund targets investments in income-producing logistics and industrial assets strategically located in major cities.

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.