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 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.