LaSalle hits final close of China logistics fund at $972m

Shanghai, China. Source: Denys Nevozhai/Unsplash

US real estate investment manager LaSalle Investment Management on Thursday 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 in a press release. Globally, the Chicago-based firm recorded about $73 billion of assets in private equity (PE), debt, and public real estate investments as of the second quarter of 2021.

Its network of limited partners (LPs) includes public and private pension funds, insurance companies, governments, corporations, endowments, and private individuals. The new vehicles reportedly roped in investors like Texas Permanent School Fund (PSF), the biggest educational endowment in the US, and pension fund Sacramento County Employees’ Retirement System (SCERS).

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.

As its first fund dedicated to China’s logistics sector, LCLV targets to acquire and reposition underperforming assets. It will also focus on cold chain logistics, whose rapid development has benefited from the rising demand for fresh produce goods in China, said LaSalle.

It invests across first- and second-tier cities located in China’s key logistics regions, including greater Shanghai, greater Beijing, and the country’s Greater Bay Area in the south.

By far, LCLV and its co-investment vehicle have already deployed and committed $423 million across 15 investments. This includes three recent acquisitions in Shanghai, Nanjing, and Tianjin.

“China has always been a key growth market for LaSalle. The successful close of LCLV will allow us to pursue compelling investment opportunities and expand our on-the-ground investment footprint, drawing upon our regional resources and local expertise in the sector,” said Keith Fujii, LaSalle’s head of Asia Pacific.

In total, LaSalle has completed over $2.1 billion of transactions in China, mostly done through partnerships and joint-funds since 2008. It currently manages over $6 billion of logistics investment in Asia, covering key markets such as China, Japan, Korea, and Australia.

LaSalle has raised its stakes in China as the country’s burgeoning e-commerce and digitisation enhanced the attraction of logistics real estate as an asset class. Logistics transactions in the market hit a record of approximately $7 billion in 2020, with 30% being cross-border deals, according to DWS and Real Capital Analytics.

“The China logistics sector continues to be underpinned by solid fundamentals – strong domestic consumption coupled with a rapid acceleration in e-commerce adoption post-Covid,” said Claire Tang, co-CIO, Asia Pacific and head of Greater China at LaSalle.

 

 

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.