LaSalle Investment Management, a global real estate investment house, has launched its fifth fund aimed at the Asian market, with a target of $1 billion.
While the total fund size is expected to be $750 million, with the cap at $1 billion, the new fund titled ‘LaSalle Asia Opportunity V’ is likely to achieve the first close at around $300-$400 million in October, according to a report in the Australian Business Review.
LaSalle already has a number of executed or pending commitments from existing institutional clients from North America and Europe, the report said.
The new fund comes after its predecessor LaSalle Asia Opportunity Fund IV successfully committed $485 million.
The target markets include Australia, Japan, China, Singapore and Hong Kong. A limited amount of development risk will be undertaken and the fund is expected to focus on logistics markets in China and Korea.
“We believe the fund’s strategy to deliver core assets to Asia’s key markets via repositioning, redevelopment and limited development risk best leverages LaSalle’s strong local teams and asset management capabilities to deliver attractive returns,” LaSalle Investment Management regional fund manager Marc Montanus said.
The fund will seek to take of advantage of Asian markets where there is solid growth in rents, along with potential capital value appreciation in the near term, invest in areas with varying market cycles and seek to ride the rising demand for core assets, the report said.
The fund this month bought its first seed asset, a 76,653 sq.m retail asset in Japan, the Kishiwada Cancan Bayside Mall which sits between the Osaka City centre and Kansai International Airport.
Over the last 10 years, LaSalle has invested a total of over $10 billion in its Asia opportunity series over the last decade.
Earlier this year the Asian Opportunity Fund IV bought the ATO premises in Brisbane for $57 million.