LaSalle successfully launches its fifth Asia Opportunity fund with seed investment in Japan
CHICAGO (August 22, 2016) –- LaSalle is pleased to announce the launch of LaSalle Asia Opportunity V (“the Fund”), the fifth in its series of closed-end, pan-Asia opportunistic funds. LaSalle is targeting a first close of US$300-US$400 million in October and currently has executed/pending commitments from existing institutional investors in North America and Europe representing more than half of this target. The total fund size is expected to be US$750 million, with a cap of US$1 billion.
Following the same value-add risk profile as its predecessor fund, LaSalle Asia Opportunity V will seek to take advantage of mispriced assets with opportunities to add value via repositioning and redevelopment. Target markets include Japan, Australia, China, Singapore and Hong Kong. A limited amount of development risk will be undertaken and is expected to focus on the logistics markets in China and Korea. The Fund is the successor fund to LaSalle Asia Opportunity Fund IV, which committed US$485 million to a similar strategy and is expected to significantly outperform its target net return of 18%.
Mark Gabbay, CEO of Asia Pacific at LaSalle Investment Management, said: “I am delighted to announce the preliminary closing of the latest fund in the very successful Asia Opportunity series. LaSalle’s current fundraise is testimony to the firm’s successful track record and deep experience in property investment in Asia-Pacific with an emphasis on asset enhancement coupled with the strength of our global client base.”
The Fund will provide investors with the opportunity to participate in a diversified portfolio with an investment strategy which focuses on income producing assets and developing core assets across Asia. LaSalle Asia Opportunity V aims to take advantage of several growing trends in the Asian market including: solid growth in rents paired with potential capital value appreciation over the near term; varying market cycles which allow investors to diversify risk and return over the hold period; and finally, the rising demand for core assets.
Marc Montanus, Regional Fund Manager at LaSalle Investment Management, said: “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.”
On 5 August, LaSalle Asia Opportunity V closed the acquisition of its first seed asset, a 76,653 sq.m retail asset in Japan, the Kishiwada Cancan Bayside Mall. The property is located between the Osaka City centre and Kansai International Airport, boasting convenient highway and train access. LaSalle sees a significant opportunity to reposition the asset after it recently lost its anchor tenant and occupancy fell to 50%.
Kunihiko Okumura, Head of Acquisitions in Japan at LaSalle, commented: “This first acquisition is a good example of the Fund’s strategy in Japan and will allow LaSalle to leverage our strong retail operational ability. We plan to execute a turnaround of the property, which will include capital improvements and re-tenanting, and will differentiate it from other developments in the trading area.”
LaSalle has invested an aggregate of over US$10 billion on behalf of the LaSalle Asia Opportunity Series in approximately 150 investments and currently has a platform of 150 people in the Asia Pacific region, with six offices in all of the Fund’s target markets.
 This release does not constitute an offer to sell or a solicitation of an offer to buy an interest in LAO V. A private offering of interests in the Fund is being made only to certain qualified investors pursuant to the Fund’s confidential private placement memorandum. Within the European Economic Area (EEA), the Fund is only available to professional investors in EEA member states where marketing has been registered or authorised in accordance with local requirements. A full list of the relevant EEA member states is available from LaSalle on request.