LaSalle Investment Management Completes Final Close of Canadian Income & Growth Fund IV
January 16, 2015 - LaSalle Investment Management today announced the final close of LaSalle Canadian Income & Growth Fund IV (the “Fund”) at an aggregate total of C$256 million, with secured commitments from 11 Canadian institutional investors.
With leverage, The Fund has a total buying power of approximately C$640 million. The Fund held its first close in December 2013, just eight months after it launched in the market, and the fourth and final close was held on December 20, 2014. This is LaSalle’s fourth Canadian value-add fund.
“We again would like to thank the investors in the fund for their support. We expect in an ever-changing market that our strong research platform coupled with our experienced acquisition and asset management team will allow us to find added value opportunities where our active asset management strategy will result in superior returns,” said Zelick Altman, Managing Director and Canada CEO for LaSalle. “To that end we have already made a number of acquisitions to meet the fund objectives.”
Jason Kern, Americas CEO, added: “The Fund has seen a very successful fund raising and close, and with the depth of market knowledge on this team, we look forward to delivering positive results for our valued clients.” The Fund offers investors the expertise and knowledge of LaSalle’s established property platform, as well as access to Canada’s flagship value-add fund series which has provided stable income and strong capital appreciation. The Fund invests in non-core properties with stable income and upside potential across the office, retail, industrial and multifamily residential market segments with a focus on Canada’s top six metro areas: Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal. LaSalle’s Canadian platform has been investing in value add properties for over 11 years and includes LaSalle Canadian Income & Growth Fund I (CIG I), launched in 2003; CIG II launched in 2005 and CIG III launched in 2009.
In its recently released 2015 Investment Strategy Annual report, LaSalle identified several key trends driving growth in the Canadian real estate market, along with its investment outlook for the year: Canada’s economic growth in 2015 will likely trail the United States, yet remain ahead of most other G7 countries.
While lower energy prices have started to impact demand in Canada’s resources sector, improvement in the U.S. economy will benefit Canada in the form of stronger export volumes in 2015 and beyond.
Private consumption is forecast to grow more slowly in 2015 given elevated housing prices and high household debt levels. Stronger business investment and government expenditures should partially offset this.
There is potential for above-average returns in renovating and repositioning underutilized urban street-front retail properties, particularly in areas where high density residential development is occurring.
In addition, e-commerce adoption will continue to grow as a share of overall retail trade and drive further changes among retailers and distribution chains in Canada. Retailers with a proven, established e-commerce platform will grow at the expense of those with less efficient or no models. The Canadian Income and Growth series operates under the management of Fund President and Canada Managing Director Zelick Altman.