LASALLE Investment Management has launched its first private open-ended core fund in Asia, the LaSalle Japan Property Fund.
The fund has received JPY 61 billion (US$560 million) of initial equity commitments from Japanese investors along with loans extended by major Japanese financial institutions. It will target capital from international investors in the future.
The initial portfolio includes six assets that have been selected based on LaSalle’s Research and Strategy framework of Demographic, Technology and Urbanization, for a purchase price of JPY 105 billion (US$965 million).
The fund will invest mainly in Tokyo, Osaka, Nagoya and Fukuoka in diversified assets across the office, industrial, retail and multi-family sectors and aims to grow to JPY 200 billion (US$1.8 billion) in three years and JPY 300 billion (US$2.7 billion) in five years.
LaSalle Asia Pacific CEO Mark Gabbay said Japan’s large, transparent real estate market is one “we know very well, providing us with a sustainable competitive advantage as we invest into core assets.”
“This advances some of our global and Asia Pacific regional strategies which is to target core assets with stable income generation and to offer our global investors access to a suite of products comprising a diverse range of real estate investments,” Gabbay said.
LaSalle Japan CEO Keith Fujii added: “The creation of the LaSalle Japan Property Fund following the launch of the publicly traded J-REIT in 2016- LaSalle Logiport REIT, enhances our products with core investment strategies in Japan.”
Fund manager Ryota Morioka said strong market fundamentals across Japan, combined with transparent capital markets, depth of existing stock and high barriers-to-entry make the core real estate market a compelling strategy in the current environment.
“For LaSalle Japan Property Fund, we seek to leverage our existing relationships in the office, retail, industrial and multi-family sectors to create a high-quality, diversified portfolio of stabilized core assets.” Morioka said.