LaSalle Investment Management has roped in Texas Permanent School Fund (PSF) and Sacramento County Employees’ Retirement System (SCERS) as limited partners (LPs) in its first dedicated China logistics fund.
Texas PSF, the largest educational endowment in the US, and pension fund SCERS are said to have committed $50 million and $30 million, respectively, to LaSalle China Logistics Venture (LCLV). The two investors confirmed the development to IPE Real Assets, which first reported the story on Wednesday.
Texas PSF and SCERS did not immediately respond to DealStreetAsia’s email requests outside business hours for comments.
The investments will add to the $681 million commitments the fund secured in its first close in April 2020 from investors in Europe, the Middle East, and Asia. The vehicle was reportedly targeting to raise up to $1 billion, private real estate markets publication PERE reported in May 2019.
As its first dedicated logistics fund for China, the Chicago-based real estate investment manager debuted LCLV in 2019, after years of investing through partnerships and joint-funds since it started looking at the country’s logistics space in 2008.
As of December 3, 2020, LaSalle had completed more than $2.1 billion of transactions in China logistics. That accounted for over half of its $4 billion-plus logistics investments across Asia’s key markets, including China, Japan, and Korea.
LCLV will invest across tier-I and tier-II cities in China’s key logistics regions, including the Yangtze River Delta (Greater Shanghai), Bohai Bay (Greater Beijing) and Greater Bay (South China).
The vehicle seeks to build a diversified portfolio of modern logistics facilities by acquiring and repositioning underperforming logistics assets. It will also look to invest in cold chain logistics as demand from the fresh food sector rises.
LCLV has made at least eight investments to date. Its recent acquisitions were made public in December 2020, when the firm purchased a portfolio of two completed assets from an unidentified e-commerce retailer in China.
The two assets include a Grade A warehouse located in Tianjin Wuqing, a satellite market of Beijing; and another logistics asset in Suzhou Industrial Park. In total, the new acquisitions added close to 139,273 square metres (about 1.5 million square feet) of modern Grade A logistics facilities to LCLV.