London (November 27, 2024) –Europe’s real estate cycle has reached a new dawn, following a deep capital market correction over recent years, according to the European chapter of the ISA Outlook 2025 report published by global real estate investment manager LaSalle Investment Management (“LaSalle”).

Last year’s ISA Outlook described the beginning of adjustment to the new reality of higher interest rates and challenging macroeconomic conditions. As we approach a new year, the latest ISA Outlook describes how market evidence is crossing thresholds that point to a new cycle. For example, data tracked by LaSalle’s asset managers show, from January 2024 to date, rents for new commercial leases across LaSalle’s European portfolio grew 2.7% relative to expiring passing rent, representing a return to an above-inflation pace.

LaSalle estimates that expected go-forward returns for the overall European property market are at their highest level in a decade. As capital slowly returns to the market and yield spreads exceed long-term averages, the real estate outlook has diverged from the region’s weak pace of economic growth due to a combination of supply barriers and asset quality polarisation.

This year’s report identifies strategic themes for investment in European real estate, which earn the region’s real estate assets an important place in investors’ property portfolios.

Beyond beds and sheds
A laser focus on “beds and sheds” has become a market consensus portfolio theme for many real estate investors, yet it is now becoming too simplistic to capture the more complex dynamics of the market.

Today’s ISA Outlook 2025 report uses fair value analysis to zero in on the best opportunities across a range of real estate capital and debt strategies and asset classes. These span all property types – not for the sake of diversification – but because we believe there are specific compelling opportunities that span across property types.

The European chapter of ISA Outlook 2025’s five strategic themes:

• Don’t forget a (real estate debt) umbrella: Real estate debt strategies can guard against inclement market conditions. New performance data for European debt funds shows the benefits of preparedness. Debt investors are also taking advantage of the choice between fixed-rate and floating-rate lending positions, and the diversification benefits of investing in both.
• Follow the hexagons for logistics: In our Paths of Distribution Score, we have mapped Europe into 158,455 hexagons – scoring each on their centrality, from an occupier perspective, for distributing goods to the most consumers at the lowest cost – and we favour logistics strategies that focus on the top-scoring hexagons within the highest ranked markets in our fair value analysis (in France, the Netherland and Germany).
• Retail back on the menu: European retail has been through a deep reset, and select retail formats now look too attractive to ignore. Outlet centres in the UK and Northern Europe offer strong alignment between tenants and operators, while Spanish and French retail parks and convenience shopping centres in the Netherlands can also deliver high income returns.
• Master adapters – how Europe’s office markets are different: Europe is leading the office market’s adaptation to hybrid work, as their largely mixed-use, mid-rise character, creates distinctive opportunities. A rebalanced office sector is not a distant next buyer prospect for many of Europe’s markets – it’s happening now. This is evident in return-to-office figures as well as property fundamentals. London City office market vacancy has now declined for five consecutive quarters, driving prime rent growth.
• A residential and living smörgåsbord: European residential (or living) is not really a single property type, it is a large collection of sub-sectors with widely varying cash flow profiles, pricing, regulation and target occupiers. There continue to be opportunities, but sector selection is paramount, with PBSA standing out in Spain and Germany.

Global uncertainty but clear opportunities

The European ISA Outlook forms part of LaSalle’s Global ISA Outlook, which finds that the new dawn extends across real estate around the world.

Greater clarity on the direction of interest rates around the world should help drive healing of the capital markets in 2025, with hesitant sellers gaining confidence as pricing starts to come in closer to their expectations.

There have, of course, been significant political developments in the US in recent weeks. The Global ISA Outlook reflects on how the “Red Sweep” may affect the real estate investment outlook and the shape of the dawning cycle, with signals pointing towards marginally higher growth, inflation and rates, but no great change in the overall outlook. LaSalle expects that the US economy remains on track for a soft landing. Equally, the European ISA Outlook considers the potential impact of the US Election in Europe, recognising that a stronger dollar could result in a possible boost in student demand for housing and tourist demand for hotel rooms.

The Global ISA Outlook also identifies areas of concern, with China a significant ‘soft spot’ due to a combination of generationally low growth and liquidity alongside weak property fundamentals. The Chinese government has made significant interventions to shore up the economy, and in recent weeks further stimulus has been implemented to guard against the potential onset of US tariffs on Chinese goods. These factors mean that China is something of a unique case in the ISA Outlook, with less applicability of global trends. Similarly, the Japanese market is experiencing a different cycle to the rest of the world. Japan is in the process of exiting a long period of deflationary risk and rock-bottom rates, so unlike other countries, monetary policy in Japan has a modest tightening bias.

Dan Mahoney, Head of European Research and Strategy at LaSalle, said: “We are seeing a new cycle dawning for Europe’s real estate markets. Today’s Europe ISA Outlook delves into why we believe we are entering a new cycle, evidence of data thresholds crossed, and our strategy for the years ahead. These go beyond simple ‘beds and sheds’ – which is too simplistic to capture the complexity of European real estate today.”

Brian Klinksiek, Global Head of Research and Strategy at LaSalle, added: “Global real estate sentiment is gradually improving following a long period of negativity and signs are pointing to the beginning of a new real estate cycle. History has shown that investing early in a cycle tends to lead to relatively strong performance. There are, however, still risks on the horizon, and investors are advised to focus on diversified strategies that are flexible and broad enough to adapt to a complex and evolving relative value landscape. A comprehensive look at value across a wide range of sectors and markets will be required to build a well-positioned real estate portfolio.”

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About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$88.2 billion of assets in private and public real estate equity and debt investments as of Q3 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.

Toulouse (November 7, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, announces the completion of Quai Saint-Pierre, a senior living development in central Toulouse that was acquired under a VEFA contract in December 2021 on behalf of Encore+, LaSalle’s flagship pan-European core-plus fund.

Quai Saint-Pierre comprises three connected buildings with over 4,500m² in total area, including 89 residential flats and 43 car parking spaces. The property offers excellent amenities to its residents across almost 800m2 of communal spaces, including a restaurant, swimming pool, tea-room with fireplace, library, fitness room, terraces and gardens.

LaSalle Encore+’s acquisition of the asset in 2021 represented the firm’s first senior-living investment in continental Europe and the Fund’s inaugural move into the sector.

The project was fully pre-let at the time of the acquisition from the developer COGEDIM, a subsidiary of the ALTAREA Group. Now completed, Quai Saint-Pierre will be operated by Nohée (previously Cogedim Club), the ALTAREA Group’s integrated senior residence management entity, which led the delivery of the project alongside development project manager Etyo.

Located in the centre of Toulouse, the fourth largest city in France, Quai Saint-Pierre enjoys both an excellent macro and micro location. Toulouse is one of the country’s most attractive urban areas, with its strong transport connections to Paris and temperate climate thanks to its location between the Pyrenees and the Mediterranean. The asset is located in one of the most sought-after, affluent areas of the city along the banks of the Garonne River and will also be well-served by close links to public transport, major road networks and Toulouse-Blagnac Airport.

David Ironside, Fund Manager for LaSalle Encore+, said: “We saw this development as a highly attractive way of increasing LaSalle Encore+’s exposure to alternative property sectors and diversifying our existing asset portfolio. The senior living market is growing as citizens increasingly look to avoid social isolation later in life and reside in higher-quality, fit-for-purpose homes, which fully provide for their needs.”

Jacques-Olivier Gourdon, Deputy Managing Director of LaSalle France, added: “The successful delivery of the project is testament to the skillset of our French asset management team and our strong relationships with partners like Etyo and Cogedim. In the context of increasing land scarcity and intensification of land use, we are very proud to have been able to breathe new life into this brownfield site, which bears witness to the city’s rich industrial past, while at the same time making the most of its remarkable neoclassical architecture.”

The history of the Quai Saint-Pierre site reflects that of Toulouse. Its origins date back to the early Middle Ages, with ship mills, grain mills, pastry mills, and paper makers among the industries established in the area in the 12th century, making the site the city’s first “industrial quarter”. In 1888, the Toulouse Electricity Company transformed the mills into a hydroelectric plant dedicated to public lighting in the city centre. In the 20th century, the site underwent further changes under the leadership of EDF, which took ownership of the power plant and the buildings in 1946. In 2012, a public entity purchased Quai Saint-Pierre with plans to establish the Institute of Political Studies of Toulouse, but the project did not obtain the support of local residents. The site then changed hands again, with the intention of being redeveloped into housing, but after the project stalled, the property was left vacant for several years, until LaSalle secured approval for a senior-living residence in 2021 – marking the latest chapter in Quai Saint-Pierre’s ongoing evolution of uses.

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About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$84.8 billion of assets in private and public real estate equity and debt investments as of Q2 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

Paris (September 11, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has agreed a 10-year lease of its landmark office building at 69 Boulevard Haussmann in Paris with FLEX-O, a provider of premium coworking and office spaces. As part of the deal, the building, which is owned by LaSalle’s flagship pan-European core-plus fund Encore+, will undergo a new fit-out, including the replacement of windows, led by FLEX-O and its parent company Groupe Courtin.

The building offers a total lettable area of 6,700 square meters over seven floors and car parking for 95 cars. Situated in a prime location in the heart of the prestigious eighth arrondissement, 69 Boulevard Haussmann offers views of Rue des Mathurins and Rue des Arcades and exceptional transport connections. It is located just 150 metres from Saint Lazare train station and a few minutes’ walk from metro lines 3, 8, 9, 12, 13 and 14, as well as the RER regional express lines A and E. The iconic Haussmannian building is positioned in the capital’s Central Business District and on one of its main shopping streets, close to major department stores.

Scheduled for completion in March 2025, the fit-out of 69 Boulevard Hausmann will transform the building into a modern workspace, combining an outstanding city-centre location with a premium range of amenities, services and technologies. The long-term lease signed with a single tenant reaffirms LaSalle’s ability to provide investors in Encore+ with exposure to high-quality commercial real estate assets in Europe’s leading markets.

David Ironside, Fund Manager, LaSalle Encore+, said: “Hosting FLEX-O at 69 Boulevard Haussmann demonstrates the flexibility of this building to adapt to a variety of uses and layout configurations, as well as the growing tenant demand for centrally located, high-quality offices. FLEX-O’s offering, their eco-responsible approach and experience in creating modern, flexible workspace environments have convinced us to work together to revitalise the attractiveness of this landmark building.”

Christophe Courtin, Founder and CEO of FLEX-O, states: “With this new location on one of the most beautiful boulevards in Paris, within one of its most iconic buildings, we strengthen our presence in the capital and reach a decisive milestone in our development. FLEX-O Paris Haussmann stands out not only for its strategic location but also for its exceptional quality, which reflects our commitment to providing our clients with prestigious and accessible workspaces. We are delighted to be partnering with LaSalle to deliver on our vision of flex-office and coworking, which combines innovation, eco-responsibility and flexibility, meeting the diverse needs of all types of modern companies.”

BNP Paribas Real Estate represented both parties in this transaction.

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About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$84.8 billion of assets in private and public real estate equity and debt investments as of Q2 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

Paris / Île-de-France is home to Europe’s top micro-locations for efficient logistics distribution, according to the inaugural release of the Paths of Distribution score, published today by LaSalle Investment Management (“LaSalle”). The innovative, granular new research gives the ability to compare logistics locations at a micro, market, country and pan-European level, with extensive flexibility for understanding, benchmarking and ranking locations at both micro and macro scale.

The Netherlands, thanks to its immediate access to Europe’s major consumption centres and having one of the crossroads of trade within and into Europe, was identified as the strongest-performing country. The port city of Rotterdam, the key gateway of global trade, ranked second and is joined in the top 20 regional markets by local rivals Amsterdam and the North Brabant region of Breda and Tilburg. Germany, the second-best performing country, provided another five of Europe’s top 20 markets, all in the west of the country, establishing this corner of north-western Europe as a hotspot for manufacturing and transportation. The UK, although separated from continental European logistics markets, placed third in the country standings, with Greater London its highest-ranked logistics market, although the West and East Midlands, the North-West of England (surrounding Manchester) and Kent all placed in the top 20 thanks to their strong infrastructure.

Belgium was fourth best performing, with the Antwerp and Brussels markets ranking seventh and seventeenth respectively. The wider Milan region also scored highly in the rankings, despite comparatively low investment volumes historically, while the Veneto-Verona corridor was another Italian market which scored well, with domestic consumption being the primary driver. Likewise, in Poland, the biggest winners were the Katowice-Krakow corridor and Lodz – ranking above the capital Warsaw – both growing notably in recent years and benefitting from investment in infrastructure and labour availability. LaSalle’s analysis shows there is a positive correlation between Paths of Distribution and logistics take-up, making a connection between current demand and these locations’ potential.

Micro-location and methodology
The research is the first of its kind, and takes an innovative, granular approach to its methodology, breaking the continent down into 158,445 10-kilometre hexagons. Each micro-location is scored across four key pillars of manufacturing output, consumer spend, infrastructure quality and the proximity to skilled labour. The model not only factors in demand, but also considers the cost from an operator’s perspective of meeting that demand, using an extensive set of region-to-region road freight transport cost metrics, along with a random forest machine learning model evaluating how extensive and accessible the road network is at the most granular level.

The top scoring micro-location hexagons are in the Eastern Crescent that semi-circles Paris, stretching from the area surrounding the Charles de Gaulle airport in the north, moving south-east through Noisy-le-Grand, then continuing south covering Créteil. This sub-market of Paris benefits from excellent connectivity into Paris, as well as to the wider French market, and further north and east.

Logistics distribution scoring is unlike other city rankings because it is about far more than central cities – entire regions and all the micro-locations within them are potentially efficient places for distribution. So the LaSalle team took a new approach filling in all the gaps in the regions of Europe between cities. The vibrant maps showing location scores across all of Europe highlight the corridors, conurbations, clusters, and crescents which define the optimal locations for modern logistics.

Petra Blazkova, Head of Research & Strategy, Core & Core-Plus Capital, Europe at LaSalle, said: “With continued uncertainty around energy prices and supply chains being disrupted, cost uncertainty is high across the continent for logistics providers. Location is a key variable which distributors can still control, and so it is more important than ever: optimising your choice of location can help minimise exposure to these other risks and protect your supply chain. Today’s rankings demonstrate which areas are best for distributors to try to insulate themselves from those pressures. As investors in the sector, this new insight into the most resilient logistics markets in Europe informs our portfolio composition and asset management.”

The full top 20 logistics markets were as follows:

1 Paris / Île-de-France, France
2 Rotterdam, The Netherlands
3 Frankfurt-Mainz, Germany
4 Milan, Italy
5 Greater London, United Kingdom
6 Rhine-Ruhr, Germany
7 Antwerp, Belgium
8 West Midlands, United Kingdom
9 Madrid, Spain
10 Dortmund, Germany
11 Amsterdam, The Netherlands
12 East Midlands, United Kingdom
13 Stuttgart, Germany
14 North West England (Manchester), United Kingdom
15 North Brabant (Breda-Tilburg), The Netherlands
16 Karlsruhe-Mannheim corridor, Germany
17 Brussels, Belgium
18 Veneto-Verona corridor, Italy
19 Kent, United Kingdom
20 Barcelona, Spain

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About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages US$84.8 billion of assets in private and public real estate equity and debt investments as of Q2 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

Washington / New York (April 11, 2024) – A new global report from the Urban Land Institute (ULI) and LaSalle Investment Management (LaSalle), a leading real estate investment management firm, offers a new framework to help the real estate industry act on climate risk disclosure data. Across the real estate industry, practitioners understand physical climate risk to assets and portfolios poses a financial risk, but there are still many challenges to enacting on the data being collected and disclosed.

This new framework is the latest tool for real estate investors and other practitioners to evaluate the costs of action and inaction when it comes to investing in resilience. The report, Physical Climate Risks and Underwriting Practices in Assets and Portfolios, is the second in a series by ULI and LaSalle. Building on the first report that outlined how to source and interpret reliable climate risk data, the second provides a market overview, adaptable framework, and recommendations based on emerging best practices for incorporating physical climate risk in the underwriting process.

“Physical climate risk data collection and disclosure is the first step the real estate industry can take to further invest in and build resilient infrastructure,” said Lindsay Brugger, head of Urban Resilience at ULI. “Data drives action and doing nothing incurs deeper costs — from higher insurance premiums to asset repair or replacement. Focusing on the underwriting process, the framework offers investment managers a methodology for developing risk-adjusted returns so deals can be adapted in alignment with a firm’s fund or portfolio objectives.”

“Of the $850 billion of commercial real estate tracked by NPI, LaSalle estimates $285 billion, or 34% is situated in high and medium-high climate risk zones in the US,” said Julie Manning, Global Head of Climate and Carbon at LaSalle Investment Management. “This report helps provide guidance that investment managers can follow to factor the climate risk data they have available to them and improve outcomes at the asset and portfolio level. We want to lead the conversation across the industry and collaborating with ULI is a great conduit to amplify the discussion that will ultimately benefit investors of all kinds with more resilient real estate portfolios.”

The framework is broken down into three steps for decision making based on individual asset risks, local market risks, and ongoing risk mitigation efforts:

1. Evaluate the level of exposure to physical climate risk and financial implications;
2. Identify hazard mitigation strategies and estimate associated costs; and
3. Determine risk-adjusted return and whether or not that return meets firm objectives

The redevelopment will also look to meet future tenant requirements and evolving work trends with high-quality amenities to promote in-person interaction and facilitate a hybrid working, including an auditorium, business centre, bars and restaurants, event spaces and a media broadcast studio.

As climate impacts continue to influence real estate markets around the world, improving understanding of physical climate risk and adjusting pricing to reflect risk are growing imperatives. Firms can better navigate the complexities of physical climate risk and capitalize on emerging opportunities by leveraging this new report’s insights and guidance. Prioritizing knowledge diffusion and empowering informed decision-making processes is key to effectively managing and mitigating incoming climate risks in the evolving real estate industry, whether at a community or individual building scale.

The full report and downloadable framework can be found on ULI’s Knowledge Finder.

REPORTERS AND EDITORS: For more information, please contact:

ULI

[email protected]

LaSalle

Drew McNeill

[email protected]

About the Urban Land Institute

The Urban Land Institute is a non-profit education and research institute supported by its members. Its mission is to shape the future of the built environment for transformative impact in communities worldwide. Established in 1936, the institute has more than 48,000 members worldwide representing all aspects of land use and development disciplines. For more information on ULI, please visit uli.org, or follow us on Twitter, Facebook, LinkedIn, and Instagram.

 About LaSalle Investment Management

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages over US $89 billion of assets in private and public real estate equity and debt investments as of Q4 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information please visit www.lasalle.com, and LinkedIn.

London (March 11, 2024) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has appointed Bouygues Rénovation Privée (“Bouygues”) as the main contractor for the redevelopment of Bergère, a landmark office-led, highly-amenitized workspace project in Paris.

Situated in the 9th Arrondissement, Bergère is in a prime location in the heart of Paris, surrounded by a thriving cluster of companies from across technology, fashion, and financial and professional services. It forms part of a vibrant urban environment with a high concentration of restaurants, bars, shops, department stores, and cultural and leisure facilities. Positioned just 150 metres from the Grands Boulevards metro station, Bergère also benefits from convenient transport links and access to three of Paris’s largest transportation hubs: Gare du Nord, Saint Lazare and Chatelet – Les Halles. The renovated building will have a floor area of approximately 26,850 square meters and was redesigned by the leading French architectural firm PCA-Stream.

Scheduled for completion in Q1 2026, the redevelopment of Bergère will incorporate industry-leading sustainability practices. This will involve a sensitive restoration of the building’s architectural heritage while upgrading the technical equipment to meet operational Net Zero Carbon goals. The project will prioritise the reuse of materials to minimise the projected embodied carbon associated, and the building is targeting a BREEAM Excellent certification, with a 50% reduction in operational CO2e and a 20% reduction in embodied CO2e compared with the benchmark for Parisian office renovations.

The redevelopment will also look to meet future tenant requirements and evolving work trends with high-quality amenities to promote in-person interaction and facilitate a hybrid working, including an auditorium, business centre, bars and restaurants, event spaces and a media broadcast studio.

Marc Fauchille, Head of Development and Repurposing, Europe, LaSalle Investment Management, commented: “We are excited to work together with the experience and expertise at Bouygues Bâtiment Ile-de-France on Bergère, to create an innovative and truly revolutionary workspace in the heart of Paris. Bergère is set to be a prime office-led development in Paris, situated in a highly sought-after location in one of the strongest European markets. The project is already attracting a high level of tenant interest given its quality, location and sustainability credentials.”

Thomas Rousseau, Managing Director of Bouygues Bâtiment Ile-de-France Rénovation Privée, adds: “We are very proud to have been selected by LaSalle Investment Management for this Parisian prime office restructuring operation, which is also listed as a Historic Monument. The teams were particularly driven by the ambition of the project, the technical complexity as well as the challenges in terms of uses and the environment. This success is the result of collective work. Our teams are already mobilized to highlight their expertise and know-how in heritage restoration, our core business. This building is a real showcase for our company in terms of decarbonization, exemplarity and innovation. A big thank you to LaSalle Investment Management and its partners for trusting us with the realization of this exceptional project.

LaSalle acquired Bergère, on behalf of Encore+, its flagship open-ended pan-European fund, in May 2020 from BNP Paribas in a sale-and-leaseback transaction.

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About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately US $90 billion of assets in private and public real estate equity and debt investments as of Q4 2024. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information, please visit www.lasalle.com, and LinkedIn.

Marketing Disclaimer: This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for information purposes only and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results. Please refer to the offering documents Encore+ for detailed information on the risks, reward and performance information of the Fund.

ENDS

About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately US $89 billion of assets in private and public real estate equity and debt investments as of Q3 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

London (January 29, 2024) LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announces that Alexandre Arhuis-Grumbach has been appointed to the newly created role of Head of Transactions Europe, Core and Core+ Strategies.

Previously Head of Encore+ Transactions, Alexandre will now oversee all transactions, across LaSalle’s core and core+ commingled funds (including the firm’s flagship Encore+ fund) and custom accounts in Europe.

In his new role, the core and core-plus transactions teams across the UK and continental Europe will report into Alexandre, who will in turn report into LaSalle’s Head of Europe, Philip La Pierre.

Alexandre has worked at LaSalle for more than 13 years, having joined in 2010 as a financial analyst on a pan-European Value-Add fund before becoming an acquisitions manager in France. He earned an MSc in Civil Engineering from the French school ESTP and an MSc in Real Estate Management from Glasgow Caledonian University. He is also a Member of the Royal Institution of Chartered Surveyors (MRICS).

Philip La Pierre, Head of Europe at LaSalle, said: “Alexandre’s newly created role will help drive core and core-plus transactions as the market continues its recovery from the macroeconomic headwinds it has faced. Having worked with LaSalle for well over a decade, Alexandre has been instrumental in the success of our flagship Encore+ fund and we are delighted that a wider range of our clients will now benefit from his transaction expertise.”

Alexandre Arhuis-Grumbach, Head of Transactions Europe, Core and Core+ Strategies at LaSalle, commented: “This is an exciting opportunity to lead LaSalle’s core and core-plus transactions at a critical time, working with a best-in-class team to source and execute transactions in line with our clients’ investment objectives. I am delighted to take on this new role and help ensure that LaSalle continues to expand across the UK and continental Europe, while maintaining its position as one of the world’s leading real estate investment managers.”

ENDS

About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately US $89 billion of assets in private and public real estate equity and debt investments as of Q3 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments.

For more information, please visit www.lasalle.com, and LinkedIn.

London (December 11, 2023) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, has secured planning permission to redevelop and refurbish Bergère – a landmark office-led, highly-amenitized workspace project in Paris.

The building is renowned for its striking façade and exceptional architectural features, such as the main atrium and the monumental staircase. Redesigned by the leading French architectural firm PCA-Stream, the redevelopment is expected to complete by Q1 2026 and will have a lettable floor area of approximately 26,500 square meters.

Located in the 9th Arrondissement, in the heart of Paris, the building is in a prime location surrounded by a thriving cluster of companies from across technology, fashion, and financial and professional services. It forms part of a vibrant urban environment with a high concentration of restaurants, bars, shops, department stores, and cultural and leisure facilities. The demand-supply imbalance for office space in the area remains acute, with Paris CBD vacancy at 1.9% compared to a European average of 7.4% as of Q3 2023, according to JLL. The area also boasts excellent transport links, just 150 metres from the Grands Boulevards metro station, providing immediate access to three of Paris’s largest transportation hubs: Gare du Nord, Saint Lazare and Chatelet – Les Halles.

The new development will meet future tenant requirements and evolving work trends, offering state-of-the-art environmental performance ratings with high-quality amenities. These include amenities to promote in-person interaction and hybrid working, including an auditorium, business center, bars and restaurants, event spaces and a media broadcast studio. It will house 442 bicycle parking spaces, with direct access from the street, as well as changing rooms, fitness facilities and 75 EV charging stations. It will also comprise street-facing food and beverage, and a retail unit designated for affordable rent for social impact-related businesses to support the local community. It will also increase the site’s green outdoor space by 50% to more than 2,000 sqm, including a garden, two court yards and two rooftop terraces.

The project will be redeveloped with industry-leading sustainability processes and credentials in mind. This comprehensive development will involve a sensitive restoration of the building’s architectural heritage while upgrading the technical equipment to meet operational Net Zero Carbon goals. It will also prioritise the reuse of materials to reduce the projected embodied carbon associated with the project.

The building aims for a BREEAM Excellent and HQE Excellent certification with a 50% reduction in operational CO2e, and a BBCA (Bâtiment Bas Carbone) targeting a 20% reduction in embodied CO2e compared to existing Parisian office refurbishment benchmarks. It will also target the BiodiverCity label for its increase in green space and biodiversity onsite, and the project has been designed to meet the Décret Tertiaire 2050 requirements.

LaSalle has appointed JLL as principal leasing agent, with CBRE and BNP Paribas. 

David Ironside, Fund Manager of LaSalle Encore+, commented: “The refurbishment and redevelopment of Bergère will provide a truly revolutionary workspace in the heart of Paris. The European office market has become polarised, with performance increasingly distinguished by quality, location and sustainability credentials. There is growing demand for centrally-located, recently refurbished assets with superior environmental performance ratings that align with the new standards of tenant expectations. Bergère will meet all these demands, and we are excited to unveil this new development.”

Marc Fauchille, Head of Development and Re-purposing, Europe, LaSalle Investment Management, added: “Central Paris is one of the strongest European office markets, with extremely low vacancy rates and rising demand for the highest quality space. We expect this highly amentizied building will benefit from increasing rental growth due to its outstanding central location and features that appeal to tenants and the people who work, live and socialise in this area. We will also be allocating space to support local social impact-related business, which we hope can make a real positive difference in the neighbouring community.”

LaSalle acquired Bergère, on behalf of Encore+, its flagship open-ended pan-European fund, in May 2020 from BNP Paribas in a sale-and-leaseback transaction.

Ends

About LaSalle Investment Management | Investing Today. For Tomorrow.
LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately $78 billion of assets in private and public real estate property and debt investments as of Q1 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information, please visit www.lasalle.com, and LinkedIn.

Marketing Disclaimer: This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for information purposes only and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results. Please refer to the offering documents Encore+ for detailed information on the risks, reward and performance information of the Fund.

LONDON (29 November 2023) – Despite a challenging macroeconomic picture, European real estate has begun to acclimatise to higher interest rates and will offer some of the world’s most attractive supply-demand dynamics next year, according to the Insights, Strategy and Analysis (ISA) Outlook 2024 report published by global real estate investment manager LaSalle Investment Management (“LaSalle”).

Last year’s report predicted European macro headwinds and a stall in capital markets activity, but also strong real estate market fundamentals. Looking ahead, the 2024 ISA Outlook for Europe describes how investors that are ready to move out of waiting mode, with realistic expectations for operating income growth, can find compelling new investment opportunities.

This year’s report identifies five trends that differentiate Europe and earn the region’s real estate assets an important place in investors’ property portfolios:

• Europe’s city centre vibrancy and occupier demand have strongly rebounded
• The region’s firms and individuals are taking the lead in decarbonization
• Skilled migration is supporting growth
• Expansion of the EU’s single market is regaining traction
• The high prevalence of inflation-index commercial leases in the EU has helped the region’s property cash flows to better keep pace with inflation  

These trends are driving demand in particular for logistics and rental housing, as well as superior performance by offices in the ‘super-prime’ segment.

Macro challenges but appealing supply-demand dynamics

Having defied expectations of a recession in 2023, Europe still faces elevated recession risk. Inflation has begun to abate but proven comparatively stubborn, particularly in the UK, inducing higher policy rates from the ECB and Bank of England. As the delayed impact of rising rates begins to bite, European property markets enter 2024 searching for a clear peak in interest rates – as well as an end to the war in Ukraine.

Europe’s occupational fundamentals are coming off the boil of recent years, with rental growth set to cool to its lowest level since 2020 next year. However, we expect that average rent growth should remain positive, especially for logistics and rental housing – even in an economic downturn – helped by low vacancy rates relative to history.

In logistics, while demand has cooled across Europe and vacancy is ticking up from extremely low levels, a shrinking construction pipeline means that the long-term revenue growth outlook remains very bright. The scope for further e-commerce market penetration is, conversely, a headwind for European retail. However, assets such as outlet centers with turnover-linked leases have lifted revenues in line with nominal sales growth.

Investors in Europe can access strategies rooted in barriers to supply, arising from Europe’s high (and rising) constraints on development. Nowhere does this apply more than in the residential sector, where the undersupply is chronic, while migration powers long-term demand growth. Surging student demand and rising mortgage rates are causing people to rent for longer and until later in life, boosting demand further in Purpose-Built Student Accommodation and rental housing specifically.

Opportunities on the leading edge of offices

European city centers are returning to their pre-Covid levels of vibrancy, attracting office occupiers and capital to more central locations. To better understand how this spectrum of office quality is evolving, we recommend going beyond ‘bifurcation’ alone in segmenting the market. The widening gaps between leading and lagging offices are determined by a range of many factors like location, design, amenities and sustainability.

In London, “super-prime” office buildings command significant rent premiums to “prime” averages. Since 2019, the UK capital’s median office relocation was from a non-BREEAM-rated EPC-D building to BREEAM Excellent / EPC-B or better. Across Paris and London, new offices’ vacancy rate is c.2%, three times less than for second-hand offices. Notably, centrally located, modern offices in Paris and Munich have defied subdued transaction levels and remain liquid, with sales attracting respectable bidder pools.

Alternative lenders gain momentum

Outside of these pockets of investment activity, alternative lenders are well positioned to solve capital stack equations in 2024, filling gaps created by  banks’ reduction in LTVs to provide debt financing that generates attractive risk-adjusted returns.

Dan Mahoney, Head of European Research and Strategy at LaSalle, said: “What we are seeing in Europe is real estate markets beginning to acclimatise to the higher-rate environment and gradually shift out of the waiting mode that has chilled transaction volumes in 2023. The continent’s distinct combination of rebounding city vibrancy, high supply barriers and compelling conditions for debt make it an important allocation in global real estate portfolios.”

Brian Klinksiek, Global Head of Research and Strategy at LaSalle, added: “Significant unknowns remain in the global real estate market as we head into 2024, including interest rates, geopolitical tensions, and whether major economies may tip into recession. While it’s very difficult to time markets, data on previous down cycles suggest that it’s often during unsettled periods that savvy investors can find strong value in real estate, making this a potentially strong vintage for investment.”

Ends

About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately $78 billion of assets in private and public real estate property and debt investments as of Q1 2023. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information, please visit www.lasalle.com, and LinkedIn.

NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.

LONDON (11 April 2023) – LaSalle Investment Management (“LaSalle”), the global real estate investment manager, today announces that LaSalle Debt Investments, one of Europe’s largest alternative real estate lending platforms, has expanded its senior-secured debt strategies to include a dedicated sustainable lending focus. In the last year, the platform has provided over €350 million of green loans across Europe.

LaSalle Debt Investments has grown its capacity to support borrowers in retrofitting existing assets to improve their energy performance and fund the construction of the next generation of energy-efficient buildings across the UK and continental Europe.

Recent green loan activity includes a £148m senior facility to support the construction of a PBSA scheme in central London, a £115m development facility to support a multi-asset regional UK PBSA portfolio, and a €40m mezzanine facility to support the retrofit of a Berlin office asset.

LaSalle was recently recognised as ‘ESG Firm of the Year’ in the 2022 PERE Awards, acknowledging the combination of strategic hires, initiatives and deals that embed sustainability as a critical pillar of the firm’s long-term corporate strategy and overall investment philosophy.

Richard Craddock, Managing Director, leading LaSalle’s senior-secured debt strategies, said: “As the drive towards Net Zero Carbon accelerates, we continue to support our European borrowers to deliver high-quality, sustainable accommodation across sectors. Demand for loans to finance green refurbishments and the construction of energy-efficient developments will likely increase as the need to decarbonise gathers further momentum. By adding a dedicated green loan focus to our existing senior-secured strategies, LaSalle is able to provide a crucial source of capital to help reduce European real estate’s carbon footprint.”

LaSalle’s green loan structures are compliant with the Loan Market Association’s green loan framework.

LaSalle Debt Investments has over €1.5bn lending capacity in Europe across its credit strategies, which include senior loans, whole loans, mezzanine, and development finance. It forms part of LaSalle’s pan-European Debt & Value-Add Strategies division, which provides debt and equity capital solutions across European markets and sectors.

About LaSalle Investment Management | Investing Today. For Tomorrow.

LaSalle Investment Management is one of the world’s leading real estate investment managers. On a global basis, LaSalle manages approximately $79 billion of assets in private and public real estate property and debt investments as of Q3 2022. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles, including separate accounts, open- and closed-end funds, public securities and entity-level investments. For more information, please visit www.lasalle.com, and LinkedIn.

NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.

About LaSalle Debt Investments

LaSalle Debt Investments is part of LaSalle’s growing $10bn Debt & Value-Add Strategies platform in Europe and invests in a diverse range of real estate credit products – spanning senior loans, whole loans, mezzanine, development finance, corporate finance, NAV facilities and preferred equity – with significant experience across various sectors, geographies, deal sizes and capital structures. Since launching the business line in 2010, LaSalle has been one of Europe’s most active alternative real estate debt providers with a long track record of lending to best-in-class sponsors.