Dave White, Head of Real Estate Debt Strategies, and Dominic Silman, Europe Head of Debt and Value-add Capital Research and Strategy, discuss how we find opportunities and the evolution of the investment landscape over the last 15 years.

Dave White and Dominic Silman discuss our investment selection process, which combines bottom-up, on-the-ground market knowledge with top-down, macroeconomic and geopolitical analysis to identify attractive investments that meet our investment criteria.

In addition to how we identify opportunities, they cover where we are likely to invest, and how the opportunities before us have evolved over the last decade and a half.

Dave White, Head of Real Estate Debt Strategies, and Brett Ormrod, Net Zero Carbon Lead for Europe, discuss the current and future state of green lending across Europe.

While lending volumes across the market remain volatile, data shows one continuously increasing metric: the demand for green loans, which is being driven by the ever-growing sustainability requirements from both investors and sponsors.

Dave White and Brett Ormrod discuss the challenges that borrowers and investors are facing, and how we at LaSalle are navigating these dynamics. They discuss how green loans are impacting the European real estate market, what they can mean for investors’ bottom lines, and the overall opportunity not just for green loans, but for greener assets in investors’ portfolios.

This article first appeared in PropertyEU’s State of Logistics report

LaSalle’s Petra Blazkova recently joined Property EU’s State of Logistics 2024 conference in Amsterdam to present the firm’s inaugural Paths of Distribution Score research, which gives the ability to compare logistics locations at a micro, market, country and pan-European level.

LaSalle identifies top logistics locations in Europe

Paris and the surrounding Île-de-France region are the top micro-locations for efficient logistics distribution in Europe, according to a new study by LaSalle Investment Management.

The Paths of Distribution study considered over 150,000 micro-locations across the UK and EU, scoring them based on factors like manufacturing output, consumer spending, infrastructure, and labour costs. It also took into account the location of Amazon warehouses and analyzed data from REITs and other real estate databases.

Presenting the results at the Amsterdam logistics event, Petra Blazkova, Europe head of Core and Core-plus Research and Strategy, LaSalle Investment Management, pointed out that the data provides valuable insights for investors seeking the most efficient and attractive logistics locations with the greatest potential for long-term rental growth.

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A prudent person sees trouble coming and ducks.
A simpleton walks in blindly and is clobbered.
— Proverbs 22:3

King Solomon’s words of wisdom have been passed down to us for 3,000 years. They still resonate, especially in this modern translation,¹ even though the “trouble” is no longer invading Assyrians or Babylonians but the type of danger we bring on ourselves through an all-too-human combination of ingenuity, hubris and ignorance. 

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Watch any movie from the 1930s to the 1960s and you will see actors inhaling tobacco smoke with abandon. We know better now. Like the generational awareness of the harm caused by tobacco products, real estate owners have gradually become aware of the dangers lurking in certain building materials and contaminated soil. Starting in the 1960s, societies have spent fortunes cleaning up “miracle products.” Asbestos, PCBs, dry cleaning solvents, herbicides and lead pipes were all considered state-of-the-art technologies at various points in human history. None of these inventions were designed with the intention of killing people. They all started with a noble purpose – whether suppressing catastrophic fires, insulating transformers, cleaning wool suits or producing a pleasing nicotine buzz that also curbed the appetite. The “externalities” associated with societal damage from the use of these products took decades to discover and billions to eradicate. 

Greenhouse gas emissions share a common ancestry with these miracle products. Heating buildings with diesel fuels, running gas lines through city streets, producing electricity with coal-fired plants—these were all logical, economical, and sensible solutions to the problem of bringing energy to homes, businesses and buildings of all types. The industrial revolution accelerated the growth of cities and raised the quality of life for millions of people by dragging them out of rural poverty. As we now know, society’s dependence on fossil fuels creates new problems which must be dealt with. 

The recognition that miracle products can carry hidden (or not so hidden) dangers follows a predictable pattern. Here is what the step-by-step process often looks like: 

Evidence and awareness. An environmental problem often requires decades of scientific study and mountains of evidence to convince people that a change is necessary. Even as this evidence accumulates, vested interests organize counterattacks to convince society that the problem is non-existent or over-stated. Eventually the harm to human life becomes so obvious that denial becomes a “fringe position.” 

Market demand. In many cases, the process of partial “market adjustment” can begin ahead of government action. Voluntary data collection and industry-led reforms start the slow process of change. In the case of greenhouse gases, the marginal contribution of each emitter is so small, and so embedded in society, that government interventions sometimes lag market-led shifts (e.g., the adoption of LED lighting or heat pumps). 

Regulatory response. Yet, government interventions are almost always needed to accelerate and complete behavioral change to truly eliminate harm to the environment and to human life created by “externalities.” These regulations and policy responses often get pushback as competing outcomes are debated in the political arena. Economists agree that putting a price on carbon would be the most efficient and effective solution, but a market mechanism for carbon pricing requires government intervention — in the form of a carbon “tax” or to set up an emissions trading scheme. 

Benchmarks and best practices. Eventually, the rise of data benchmarks and peer group comparisons begins to shed light on who, where and how successful “treatments” are applied to any environmental problem. Engineering and laboratory science helps inform this stage of the process, as does public health or industry group data. Integration with market investment processes and decisions leads to a focus on reversing years of damage to the environment and compliance with new regulations and guidelines. At this stage, market-driven and regulatory-driven changes start to converge. 

Price integration. Feedback loops are established where type 1 errors (false positives) and type 2 errors (false negative—or overlooked problems) are exposed.² In loosely regulated situations like climate change, the efficient market hypothesis (EMH) takes hold as the change process gets partially or fully priced by consumers and producers. Economists and policy analysts favor the practice of placing a “price” on an externality to compensate society for the harm. In practice, though, compensatory payments to offset environmental damage are often decided through the courts and litigation. 

Continued market and regulatory evolution. The enforcement of tighter regulations also follows its own trajectory depending on the governance structure of a particular country or urban jurisdiction and the toxicity of the problem. The discipline of epidemiology, using population data and public health analysis, is especially helpful at this stage of refining the policy solutions. 

The Transition from “Data” to “Wisdom” 

For the de-carbonization of buildings, various markets and countries are well into Step 3 (Regulatory Response) and Step 4 (Benchmarks and Best Practices). In Europe the “theory of change” is focused more on EU-wide or national policies to promote energy disclosures through top-down regulatory solutions. In the United States, the emphasis is based more on voluntary pledges, market solutions and regulations that are based on specific local jurisdictions. In most developed countries, steps 5 (Price Integration) and 6 (Market and Regulatory Evolution) are underway, but both have a long way to go. 

The rise of real estate sustainability benchmarks (like GRESB) has accelerated in recent years. In many cases, they have expanded to include social factors and tenant well-being alongside environmental metrics. The next hurdle, though, is to establish materiality tests that infuse meaning, and determine financial impacts based on the volumes of reporting that the industry has started to produce and disclose. 

Reading through ESG reports often reveals the triumph of reporting and public relations over salience or relevance. The conjoint challenges of reducing building emissions alongside improving the well-being of building users and the surrounding communities can be obscured by data denominated in less familiar metrics like tons of CO₂ or Kilowatt hours. In time, and with experience, the emphasis will shift to what truly moves the needle on all elements of the “sustainable investing” paradigm—and which metrics give off misleading or meaningless “virtue” signals.   

Financial metrics align most closely with the “fiduciary duty” of an investor. Moreover, stakeholders have decades of experience analyzing and interpreting financial data. It will take additional time and effort to convert environmental data into financial terms or to simply raise the consciousness of how to interpret energy and emission data in its own right. (LaSalle’s work on the “Value of Green” synthesizes studies of the evidence linking sustainability metrics and financial outcomes. An update on this work is below.) 

In writing Proverbs, King Solomon gathered centuries of wisdom based on experience. In the modern world, we often believe that the steps to wisdom are built on a foundation of knowledge, information, and data. The famous “DIKW” hierarchy has been a mainstay of information sciences since the 1930s. Sustainability wisdom is still in the process of being formulated and likely requires more time to make progress. Fortunately, the foundations of this wisdom are already being put in place—first through data (the modern way to refer to many, many experiences), then information (organized and analyzed data), eventually leading to knowledge (patterns are identified and the “what” and “why” questions are answered) and finally reaching the status of accumulated wisdom (how to respond). This is a path that humans have traveled before. More lives are at stake this time around and the wisdom may not be easily agreed upon by all industries, countries and stakeholders. Nevertheless, the search for sustainability wisdom must continue and time is of the essence.  

Revisiting LaSalle’s “Value of Green”

In September 2023, LaSalle published our ISA Focus report What is the value of green? Looking at the evidence linking sustainability and real estate outcomes. The report presents a framework on how sustainable attributes of properties can be viewed as both as drivers and protectors of value, along with showcasing findings from the broader literature. We continue to maintain a Value of Green tracker, monitoring research on this subject as it is produced. Some of the findings that have surfaced since the release of our initial report are worth highlighting:

• In early 2024, CBRE reported in their UK sustainability index that efficient properties outperformed inefficient properties by close to 2% per year in terms of total return, over the course of 2023 across three major property types. The efficiency of buildings was delineated through EPC ratings.
• UBS reported in late 2023 that a green premium of 28% and 19% in price per square foot was in evidence in the New York and London office markets, respectively, when comparing office transactions based on LEED/BREEAM certifications. This premium was also established in cap rates, showing a 36 and 27 bps premium for New York and London respectively.
• MSCI published a report on price premiums for green buildings, and how they have changed over time. Looking at offices in Paris and London, a clear trend emerged from 2019 onwards showing a growing sale-price gap between offices with and without sustainability ratings. In the case of London, the gap was close to non-existent before 2019 and had since grown to 25% as of the latest reported data point in late 2022.
  

Beyond the direct links between sustainability and historical investment performance in terms of return, rent and value premiums, more signals are emerging as available data on the topic grows, and becomes increasingly forward looking:

• In 2024, JLL published in their “Green Tipping Point“ report on how the supply/demand balance is shifting in favour of sustainable offices across the globe, as tenant demand evolves. JLL projects a 70% unmet demand across 21 global office markets.
  

Beyond results based on backward-looking data, detailed case studies of investments into sustainable initiatives are being published. The JLL report “Future-Proof Your Investments“ showcased opportunities for sustainable New York offices; another example is CBRE’s report “The impact of on-site rooftop solar on logistics property values.”

Tobias Lindqvist
Strategist, Climate and Carbon Lead, London

Sources:
CBRE (March 2024) UK Sustainability Index Results to Q4 2023. CBRE
P. Torres, G. Bolino, P. Stepan (2024) The Green Tipping Point. JLL
T.Leahy (2022) London and Paris Offices: Green Premium Emerges. MSCI
P. Torres, J. del Alamo (July 2024) Future-proof your investments. JLL
D. Marina, J. Tromp, T. Vezyridis, O. Bruusgaard (July 2023) The impact of on-site rooftop solar PV on logistics property values. CBRE
O. Muir, Y. Chen, T. Metcalf et.al (Dec 2023) Green premium: Study of New York and London Real Estate finds strong evidence for a ‘green premium’. UBS

What can we learn from simulations?

The de-carbonization of buildings is taking place in a complex and ever-changing environment. It is a multi-dimensional problem replete with uncertain outcomes, regulatory change, shifting societal norms and markets, and the politicization of sensitive issues.

At the June 2024 MIT World Real Estate Forum, Professor Roberto Rigobon unveiled a “sustainability simulation” game patterned on his pathbreaking work on social preferences for the European Commission. The technique shows how the traditional economic conceit that we make “resource trade-offs” does not accurately capture how humans make decisions when faced with multi-dimensional choices.

In the simulation, the audience was given nine choices for different retrofit projects for a commercial building. Each choice resulted in simultaneous movement across three metrics that the audience had already established that they cared about — changes in NOI (profitability), CO₂ emissions, and tenant satisfaction/well-being. The cost of the projects was amortized into the NOI calculations and the other metrics were also calibrated based on actual data from the US.

The simulation showed that a knowledgeable real estate audience rarely solves just for “pure profits” at the expense of tenant well-being or CO₂ emissions. The simulation also mimicked reality—where sometimes profitability moves in synch with reduced CO₂ emissions and other times it moves it moves in the opposite direction. The simulation was designed to show how the co-movement depends on the local market and the type of de-carbonization project. Tenant well-being and CO₂ emissions could be implicitly linked to revenue when and if participants believe that occupancy, rents and capital raising are all interconnected.

Through their choices, the audience tried to optimize across all three priorities at once — leading to an interesting result that revealed their average willingness to “pay” to reduce a ton of CO₂ emissions of about $200 ton. Yet, if asked directly how much they would pay to reduce a ton of greenhouse gas coming from a building, it seems unlikely that many would have volunteered to pay that much. This finding also shows how the language of profitability and returns is much more advanced than the metrics and concepts associated with either decarbonization or tenant satisfaction. And that all these metrics are linked, but not fully integrated in the minds of real estate professionals.

Only a few participants in the game focused only on reducing CO₂ (at the expense of decent profits). And just a few focused exclusively on profitability at the expense of tenant satisfaction or CO₂ emissions. This seems like a reasonable facsimile of what enlightened investors will do — especially when they know that their actions are being disclosed. As we learn more from these simulations, it is possible that policy makers will be able to refine the mix of incentives and regulations that govern the real estate industry.

Jacques Gordon
Cambridge, Massachusetts

LOOKING AHEAD >

• As we advance through the six stages of market wisdom, sustainable features in real estate move away from purely “virtuous” and toward increasingly meaningful drivers of investment value. As noted in our ”Value of Green” report the challenge for investors is understanding where, when and how sustainability is driving performance, which is highly variable across markets and sectors. Given LaSalle’s global reach, we are well positioned to observe, learn and act to enhance and protect asset values for our clients, and gain and share wisdom in the process.
• Markets are shifting towards wider alignment with a more sustainable future, new data and findings are continuously published. At LaSalle we also focus on the data generated within our walls, linking our own initiatives driving sustainability with their associated investment outcomes, bringing our own data and experience into the DIKW hierarchy.
• Recognizing the importance of meaningful benchmarks to drive decision-making (Stage 4), LaSalle has been leading an industry initiative to develop an improved solution for decarbonization pathways in the US and Canada, which could be adopted by CRREM and others globally.  More meaningful decarbonization pathways will help investors properly measure transition risks and set targets, setting the industry up to make real progress in decarbonizing the built environment.
• Evolution over the Six Stages will likely be uneven over time, geography and investor type. This unevenness could provide investors at more advanced stages an advantage over less progressed investors. For instance, an investor who has incorporated a carbon business case into their investment process is at an advantage to appropriately price opportunities. For example, it should help investors identify attractive brown-to-green strategies.

Footnotes

¹ The Message, translated from the Hebrew scriptures by Eugene Peterson (1993-2002).

² These are all part of the learning that occurs with any “treatment hypothesis.” The science of public health provides solid evidence to weigh whether the “treatment” is helping, hurting or having no impact on the eradication of the underlying disease. In real estate, a good example of this is the gradual discovery that with certain types of asbestos, it is more dangerous to remove it than to “encapsulate” it in an existing structure. The science of “decarbonization” is still being established to determine whether, for example, the mass production of lithium batteries does as much harm as the burning of fossil fuels. For real estate and climate change, the “treatment” will likely focus on energy efficiency/ decarbonization interventions that are a combination of government penalties/incentives and voluntary actions. The effectiveness of these treatments will depend on compliance, market response, and how well interventions find acceptance through the political process.

Important Notice and Disclaimer

This publication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities or any interests in any investment products advised by, or the advisory services of, LaSalle Investment Management (together with its global investment advisory affiliates, “LaSalle”). This publication has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients and under no circumstances is this publication on its own intended to be, or serve as, investment advice. The discussions set forth in this publication are intended for informational purposes only, do not constitute investment advice and are subject to correction, completion and amendment without notice. Further, nothing herein constitutes legal or tax advice. Prior to making any investment, an investor should consult with its own investment, accounting, legal and tax advisers to independently evaluate the risks, consequences and suitability of that investment.

LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.

By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.

Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.

One of our key conviction sectors for real estate investment over the last few years has been logistics. It has been a particular focus of our research, as we seek to identify investment opportunities in prime locations. But with continued uncertainty around variables such as energy prices and supply chains being disrupted, cost uncertainty is high across the continent for logistics providers.

Location, however, 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.

LaSalle’s inaugural “Paths of Distribution Score,” focuses on the geography of the European logistics market. This innovative, granular new research gives us the ability to compare logistics locations at a micro, market, country and pan-European level, with extensive flexibility for understanding, benchmarking and ranking locations – and opportunities to deploy capital – at both micro and macro scale. As investors in the sector, this new insight into the most resilient logistics markets in Europe informs our portfolio composition and asset management.

This article first appeared in the August 2024 edition of IPE Real Assets

With increasing regulations and more investors embedding sustainability goals into their investments, incorporating green targets into the debt component of the capital structure is becoming more common. As a result, the debt market across Europe is becoming a two-tiered market, with more green loans being issued at the same time as overall lending volumes have declined.

In this guest article for IPE Real Assets, Dave White discussed the growing appetite for these loans across Europe, and how both lenders and investors are responding to this changing landscape.

At LaSalle, we are often asked what investors in real estate debt and what borrowers of our credit solutions can expect from us.

For investors, knowing that their investment manager has successful, long-term relationships with their borrowers is a strong sign that those interactions will continue, and that attractive investment opportunities will remain available. This dynamic allows us to remain both disciplined and selective in the areas where we choose to invest capital.

For borrowers, recognizing that their credit provider has a wide range of capital solutions, and can offer competitive terms backed by certainty of execution is paramount to our success. Further, this is what drives such a high repeat borrower base and the ability to foster long-term relationships with our borrowers.

As one of the largest providers alterative credit solutions in Europe¹, we find ourselves in the enviable position of being able to truly understand how important both borrowers and investors are to the whole equation. This dynamic allows us to remain active investors in this market, highlighting our expertise in the sector.

What can real estate debt investors expect from LaSalle?

What can real estate debt borrowers expect from LaSalle?

1. Source: Real Estate Capital Europe, Summer 2023 issue

LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.

By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.

Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.

LaSalle is one of Europe’s largest and most established investors in real estate debt, offering a variety of loan types across sectors. Learn more about this dynamic asset class, and LaSalle’s capabilities from Dave White, Head of European Debt Strategies here at LaSalle.

Dave White, Head of Real Estate Debt Strategies, Europe discusses the market in 2024 and where we are seeing opportunities for investors.

Over the last several years, we have seen an increase in the number of institutional investors around the world interested in adding real estate debt to their portfolios.¹ In some instances, this is to replace an allocation to traditional fixed income, while in others it is both an enhancement and a way to further diversify their current level of real estate holdings.

Real estate debt versus traditional fixed income

Real estate debt differs from traditional fixed income investments in a variety of ways, primarily through collateralization, income generation, differing risk factors, the potential for securitization and its direct relationship to underlying real estate assets. In the same way that investors looking for reliable income streams and relative stability across a number of fixed income products such as government bonds or corporate credit, they can also turn to real estate debt investments.

One key differentiator for the asset class is that it is typically secured by tangible collateral in the form of real estate. Further, real estate credit investments benefit from attractive positions within a capital structure, benefitting from a subordinated first-loss position from equity, and also from negative control structures which give lenders an ability to proactively protect capital in a downside scenario. In contrast, traditional fixed income investments such as corporate or government bonds are usually unsecured and rely solely on the creditworthiness of the issuer.

For many institutional investors, income generation is a key objective and something that real estate debt investments can generate primarily through interest payments on the loan. These interest payments are often higher than on traditional fixed income investments such as sovereign or investment-grade corporate bonds. Additionally, real estate debt may also offer the potential for additional income through loan origination and exit fees, or in some instances, profit participation. Like other investments in any asset class, real estate assets are subject to market fluctuations and economic cycles. There are, however, additional property-specific risks that investors should take into consideration. These include factors such as underlying occupancy and cash-flow drivers as well as capital markets. Investors should also consider the wider macroeconomic and credit-risk considerations that investors in listed fixed income must factor into their decision making. Lending against property embeds the possibility of active takeovers, also known as workouts, requiring hands-on asset management expertise. 

In some instances, real estate debt can be securitized, meaning loans are packaged together and sold as securities in the market. This allows investors to gain exposure to real estate debt through mortgage-backed securities (MBS) or collateralized debt obligations (CDOs). Traditional fixed income investments, on the other hand, are typically traded as individual bonds or included in bond funds.

Lastly, real estate debt investments are directly tied to specific properties or real estate platforms. The performance of the underlying property and its cash flows can impact the value of the debt, along with a borrower’s ability to repay it. Traditional fixed income investments are generally linked to the creditworthiness and financial health of the issuer, without a direct connection to specific underlying assets.

So why should institutional investors consider real estate debt?

As with any other asset class, real estate debt has its own unique set of attributes which, as part of a diversified, risk-adjusted portfolio, may provide investors with compelling reasons to include it within their overall strategy.

Key benefits may include: 

• Stable income generation: Real estate debt investments can offer institutional investors stable, predictable income streams. Fixed income from interest payments on real estate loans provides a source of reliable cash flow, which can help insurance companies meet their obligations to policyholders or help pension schemes ensure that they have enough cash on hand to meet near-term pension payments. 
• Risk-adjusted returns: Historically, real estate debt investments have provided attractive risk-adjusted returns. Investments in senior debt, for example, typically offer relatively lower risk compared to equity investments, while still providing competitive yields. This can be particularly appealing to pension schemes that prioritize stable returns and capital preservation. 
• Liability matching and a long-term investment horizon: Pension schemes and insurance companies both have long-term obligations to pay future benefits. Real estate debt investments, with their typically longer durations and cash flow characteristics, can align well with these long-term liabilities. By matching the duration and cash flows of their investments with their obligations, pension plans can better manage their long-term funding requirements. Similarly, insurance companies typically have long-term investment horizons and investments with longer durations are often well suited to their needs. Real estate debt investments, with their longer repayment terms, can align well with the long-term nature of both kinds of liabilities, allowing for assets and liabilities to be more effectively matched. 
• Diversification: Investing in real estate debt can help institutional investors to diversify their portfolios. By including real estate debt alongside other asset classes such as stocks, bonds, and even real estate equity, they can spread investment risk across different markets and sectors, reducing the overall volatility of their portfolio. 
• Risk mitigation and capital preservation: Real estate debt investments are typically secured by tangible collateral in the form of real estate. This collateral can help provide a level of protection as lenders typically have the ability to enforce, which serves as a buffer against defaults and reduces the risk of principal loss compared to unsecured investments. 
• Regulatory considerations: Some institutional investors, particularly insurance companies, often face regulatory requirements related to capital adequacy and risk management. Real estate debt investments, particularly senior debt, are typically treated favorably under such regulatory requirements, providing capital efficiency to investment portfolios. 

As always, it’s important that real estate debt, like any other asset class, is considered as a component part of an overall portfolio of investments constructed with the underlying objectives of the investor in mind. When properly integrated into a portfolio, real estate debt investments have the potential to offer institutional investors the opportunity to generate stable income, diversify their portfolios, align their investments with long-term liabilities, protect against inflation, target attractive risk-adjusted returns and, in some cases, adhere to regulatory requirements. 

¹ INREV Investment Intentions Survey, 2017 – 2024

This publication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities or any interests in any investment products advised by, or the advisory services of, LaSalle Investment Management (together with its global investment advisory affiliates, “LaSalle”). This publication has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients and under no circumstances is this publication on its own intended to be, or serve as, investment advice. The discussions set forth in this publication are intended for informational purposes only, do not constitute investment advice and are subject to correction, completion and amendment without notice. Further, nothing herein constitutes legal or tax advice. Prior to making any investment, an investor should consult with its own investment, accounting, legal and tax advisers to independently evaluate the risks, consequences and suitability of that investment. LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance. By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.

Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management. GL001731MAY25

This article first appeared in the May 2024 edition of PERE

LaSalle’s Dave White sat down with peers from other leading alternative credit providers across Europe to discuss the state of real estate debt across the continent.

Opportunities are slow to unfold in European real estate debt

A golden era for alternative real estate lenders has so far failed to get underway. But there are signs the machinery is becoming unclogged, writes Judi Seebus

A year ago, alternative real estate lenders in Europe were convinced they were on the cusp of a golden age. During PERE’s European debt roundtable discussion in March 2023, participants spoke of a “huge” opportunity ahead to take advantage of a potential shortfall in refinancing funds for maturing loans amid a potential retrenchment from traditional lending sources. “I have seldom been this excited to be investing in debt,” said one participant.

Report Summary: Physical climate risk data can be a powerful tool for managing asset and portfolio risk and returns. Learn what strategies leading firms are using to manage physical climate risks and navigate market challenges. The latest report from the Urban Land Institute and LaSalle Investment Management builds on their previous report, How to Choose, Use, and Better Understand Climate Risk Analytics, to describe how leading firms are leveraging physical climate-risk data in underwriting practices. With insight into asset- and portfolio-level risk becoming increasingly easy to obtain, new challenges lie in effective interpretation and integration of information into investment practices. Relying on research and interviews with industry leaders, this report provides a nuanced exploration of this emergent issue.

Read the report on the ULI’s Knowledge Finder

Physical Climate Risks and Underwriting Practices in Assets and Portfolios is structured into three sections, each addressing different aspects of the industry’s response to climate-risk data:

Section 1. Explore the current state of the industry, finding that:

• Leading firms actively coach their teams on physical risk.
• Regulatory trends affect, but do not motivate physical risk assessment.
• Different geographies approach physical with their own level of urgency.
• Investment managers tend to focus on fund risk, capital providers on portfolio risk.
• Tools to understand and price physical risk are still in a nascent stage of development.

Section 2. Examines the application of climate data in decision making. Key findings include:

• Aggregate physical risk is a screening tool; individual hazard risk is actionable information.
• Climate value at risk remains opaque; the utility of the single number offers value but needs increased transparency.
• Atypical hazard risk (e.g., flood in a desert) merits increased attention.
• External consultants can frequently fill skill gaps, especially for firms with less in-house expertise.
• While no predominant timeframe or Representative Concentration Pathway (RCP) emerged as industry standard, the 2030 and 2050 benchmarks were the most commonly referenced time horizon.

Section 3. Assess the impact of physical climate risk on acquisition, underwriting, and disposition practices; finding that:

• Leading firms start with a top-down assessment of physical risk.
• Market concentration of physical risk is analogous to other concentration risks—a nuanced analysis is required.
• Capital expenditure for resilience projections is a key forecast but rife with uncertainty.
• Local-market climate mitigation measures are important to understand but difficult to forecast.
• Exit cap rate discount for estimated physical risk is an increasingly commonly used tool, frequently 25 to 50 basis points.
• Firms infrequently disclose physical risk but the market needs increased transparency.

This publication does not constitute an offer to sell, or the solicitation of an offer to buy, any securities or any interests in any investment products advised by, or the advisory services of, LaSalle Investment Management (together with its global investment advisory affiliates, “LaSalle”). This publication has been prepared without regard to the specific investment objectives, financial situation or particular needs of recipients and under no circumstances is this publication on its own intended to be, or serve as, investment advice. The discussions set forth in this publication are intended for informational purposes only, do not constitute investment advice and are subject to correction, completion and amendment without notice. Further, nothing herein constitutes legal or tax advice. Prior to making any investment, an investor should consult with its own investment, accounting, legal and tax advisers to independently evaluate the risks, consequences and suitability of that investment.

LaSalle has taken reasonable care to ensure that the information contained in this publication is accurate and has been obtained from reliable sources. Any opinions, forecasts, projections or other statements that are made in this publication are forward-looking statements. Although LaSalle believes that the expectations reflected in such forward-looking statements are reasonable, they do involve a number of assumptions, risks and uncertainties. Accordingly, LaSalle does not make any express or implied representation or warranty, and no responsibility is accepted with respect to the adequacy, accuracy, completeness or reasonableness of the facts, opinions, estimates, forecasts, or other information set out in this publication or any further information, written or oral notice, or other document at any time supplied in connection with this publication. LaSalle does not undertake and is under no obligation to update or keep current the information or content contained in this publication for future events. LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication and nothing contained herein shall be relied upon as a promise or guarantee regarding any future events or performance.

By accepting receipt of this publication, the recipient agrees not to distribute, offer or sell this publication or copies of it and agrees not to make use of the publication other than for its own general information purposes.

Copyright © LaSalle Investment Management 2024. All rights reserved. No part of this document may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without prior written permission of LaSalle Investment Management.

This article first appeared in February 2024 edition of the BAI Newsletter

For debt providers, the relative risk adjusted return profile for new real estate credit today is very attractive. Higher interest rates have helped to improve the return profile, and new loan detachment points are generally trending lower, particularly in instances where borrowers are willing to show support for underlying assets and commit additional cash to a transaction.

These attractive fundamentals for lenders were largely in place last year too, however transaction volumes across new acquisitions and refinancings were limited for a variety of reasons. By contrast, in 2024 we expect to see robust demand for debt financing solutions provided by real estate investment funds. This is due to both recent market developments and longer-term structural trends. In the shorter term, borrowers have begun to adapt to a higher cost of financing. This comes as no surprise given the dynamics behind the rapid increase in interest rates that abruptly ended 15 years of historically low rates. With the borrowing market adapting to this new environment, and with interest rates expected to stabilize and start to decline, we have also seen transactions start to move forward at the start of 2024. It is expected that debt will again become a common component of sponsors’ business plans in 2024.

In the longer term, the migration of commercial real estate lending activity away from banks and towards debt funds has been a dominant theme over the past 15 years. The long-running Bayes Business School study of UK CRE lending* found that, in the first half of 2022, debt funds exceeded domestic banks’ new originations for the first time.

Alternative lenders are poised to further expand their market share in the coming years. Bayes Business School estimates demand for real estate finance in Europe at €310 billion per year, and the current stock of outstanding real estate debt at €1.6 trillion. However, as underlying values have declined and loan-to-value ratios (LTVs) are down, traditional lenders may only be willing to advance around €1.3 trillion of the capital necessary to refinance loans maturing through 2027.

Source: MSCI Real Capital Analytics, Bayes Business School, CBRE, JLL, LaSalle (01/24).
Notes: Past performance is not indicative of future results. There is no guarantee that any trends shown herein will continue or that any forecasts shown herein will materialize as expected. Funding gap estimates based on Bayes Business School assessment of debt outstanding and maturing annually, and LaSalle forecasts of capital value change.

Funds will therefore encounter a significant volume of investment as they play an ever-increasing role in addressing the real estate financing gap, created by banks’ ongoing retrenchment and the considerable quantities of debt falling due for refinancing in the short run.

Despite these attractive dynamics for non-bank real estate lenders, this remains a market with potential for real dispersion in performance between fund managers. Delivering attractive risk-adjusted returns for investors will require several crucial ingredients, including having a well-resourced platform across all facets of the business that is established in the market and leveraging analytical tools to negotiate with borrowers.

The benefits of an established market presence and platform

For alternative lenders to remain competitive, they must be able to offer sponsors a wide range of capital solutions. The flexibility afforded by a variety of debt structures should help borrowers transition to a higher-rate environment, allocate risk to where it is most suitably borne and ensure that good-quality properties continue to have access to liquidity.

In other words, both debt funds and borrowers benefit from differentiated pockets of debt capital, ranging from senior lending, whole loans, levered whole loans and mezzanine, including development and refurbishment financing. Borrower demand for bespoke financing solutions makes this an attractive environment in which to be active and to deploy capital across a diverse range of market opportunities.

As a lender, a natural complement to this diversity of investment strategies is a wider geographic scope. The ability to deploy capital across borders and across currencies further enhances funds’ ability to be selective.

Structuring is also critical, particularly when underwriting risk for assets that traditional lenders are less willing to finance. Appropriately managing risk while offering more structured solutions, utilizing a range of protections such as standard loan covenants or business plan targets are all measures that help align interests between borrowers and lenders.

Scalability also plays a critical role in a lender’s ability to remain competitive in today’s environment. – While refinancing needs can be met by more traditional senior-mezzanine lending structures, an increasingly prevalent structure sees a whole loan provided by an alternative lender. The whole loan provider provides a single counterparty and point of contact for a borrower to work with, while allowing for more certainty as well as enhanced control for the lender. This combination of a flexible investment mandate, cross-border presence and a robust approach to underwriting and deal structuring is fundamental to striking the right balance between supporting borrowers and protecting investors’ capital. These attributes will naturally be found in those established players with a proven track record of transacting and who can offer certainty and speed of execution.

Those same funds will also disproportionately be those with access to a wider asset management platform, also to borrowers’ benefit.

Ultimately, a collaborative real estate debt investment manager will not be extending loans with the express intention of eventually taking over or outright owning the assets. But being part of a large platform with asset management capabilities is not just an important safety net in the event that a restructuring and transfer of ownership does take place. It also helps pre-empt and avoid that situation. Drawing on those asset management capabilities means that lenders can identify red flags in a deal early-on, and in turn work with their borrowers and help provide insight into ways to maximise value.

Leveraging wider analytical tools

As detailed in LaSalle’s ISA Outlook 2024, we also believe that, to lend successfully in a challenging market, debt providers need to maintain a targeted approach, effectively sourcing transactions by scrutinising market data and making use of local market presence.

Tapping into a wider pool of analytical tools, data and longer-term outlooks is invaluable when working with borrowers and understanding their commercial horizons. For example, in the absence of comparable transactions to act as reference points for how certain asset valuations have rebased, the ability to conduct price discovery by analysing, understanding, and underwriting fundamentals from the point of view of an equity sponsor is key.

In some instances, fresh borrower equity is required to support elongated business plans. To that end, fostering a good relationship with borrowers by working with their reformulated business plans is fundamental to unlocking the right structured financing solutions, especially in the face of forthcoming debt maturities. In a market impacted by rising interest rates and geopolitical convulsions, finetuning capital requirements quickly can be only undertaken by a real estate manager with the capabilities and resources to conduct that deep analysis.

Good data is also important when seeking to invest across a range of different real estate assets. Currently, lender appetite is focused on sectors with especially strong occupier fundamentals, and their ability both to capture rental growth in line with inflation and to access relatively liquid capital markets. Logistics, residential, student and select operational sectors, such as hospitality, are widely considered to offer resilient fundamentals. This is resulting in a reasonable degree of liquidity for originating new financings in those preferred sectors, but insight remains crucial to picking both markets and sponsors with the capabilities to access such growth. More importantly and particularly in scenarios whereby strong occupational trends are obvious, it is still critical to understand cost structure, and ultimately capital markets in an environment where very little transaction data exists. Access to good quality data is a key component of determining underlying value of an asset in today’s environment.

Outside of those preferred sectors with a more obvious path to cash flow, the traditional sectors of offices and retail have been most challenged. That is especially true for offices outside of prime CBD, whereby a large amount of uncertainty exists, arising from the cloud of uncertainty surrounding future occupier demand and what the impact on capital markets over the long run will be. Data-led insights and a proprietary view on whether, how and where the office market will recover is therefore an important advantage for lenders. For example, ESG credentials are increasingly important as a key determinant of asset performance in the office sector. Wellness, energy efficiency, sustainability accreditations – all of these are metrics that need to be analysed to forecast occupier demand, and in turn, valuation trends.

Opportunities and challenges for 2024

Since the global financial crisis, commercial real estate lending has evolved towards a diverse pool of capital providers which includes both more traditional banks, but also debt funds. In 2024, this trend is expected to continue.

Despite the scope for funds to earn more market share this year, lenders face many potential pitfalls. When it comes to origination, sourcing financing opportunities will require a focus on parts of the market where supply and functionality has lagged societal trends. These situations enable rental growth at or above inflation, aligning with what individual and corporate occupiers want from their spaces. Likewise, credit selection and structuring will require a keen eye on lending basis and coverage levels, alongside the underlying real estate capabilities of the sponsors.

Real estate credit is currently a highly attractive asset class. But to ensure that both fund investors and borrowers are being served well requires a debt platform that can provide a variety of leverage solutions, tap into a rich bank of data/analytics, and draw on insights from a wider bench of real estate specialists, all underpinned by a market-leading team with exceptional borrower relationships. Those are the characteristics that investors and borrowers alike should prioritise in their partners.

*From 2018, The UK Commercial Real Estate (CRE) Lending Survey is based at Bayes Business School, City, University of London. The Survey is a unique and comprehensive record of CRE lending, and an industry standard source of information, regularly referenced in the national financial press and trade publications: https://www.bayes.city.ac.uk/ faculties-and-research/centres/real-estate/bayes-cre-lending-report. Up to 2017, the study was published by De Montfort University, Leicester.

At a recent CREFC Europe event co-hosted by LaSalle and property developer Regal London, representatives from the real estate industry’s leading debt funds, banks, and developers came together to discuss the outlook for European real estate credit markets.

Hosted at LaSalle’s new London offices, the open-forum discussion between all participants covered topics such as the (re)financing environment for borrowers and lenders, where lenders and borrowers see best value and greatest opportunity, and who should assume the responsibility for bearing the costs of delivering sustainable real estate.

A higher interest-rate environment, quick on the heels of the pandemic, makes this an important juncture for participants in this diverse and opaque market to share perspectives. Introducing the session, Dominic Silman, LaSalle’s European Head of Debt and Value-Add Capital Research and Strategy, compared analysing real estate debt markets to the parable of the blind men and the elephant. Each interprets what they can feel, depending on the part of the elephant that they are holding – from snake to tree to fan. Likewise, real estate debt markets are covered by a variety of different data sets which, taken in isolation, can fail to capture the bigger picture.

Some of the megatrends remain readily apparent. The migration of commercial real estate lending activity away from banks and towards debt funds has been a dominant theme over the past 15 years. The long-running Bayes Business School study of UK CRE lending found that, in the first half of last year, debt funds exceeded domestic banks’ new originations for the first time. Funds will continue to play an increasing role in addressing the financing gap created by banks’ ongoing retrenchment and the considerable quantities of debt falling due for refinancing in the next 15 months.

However, it can be a challenging market for funds to negotiate those refinancings. David White, Managing Director in LaSalle’s Debt Investments team, pointed out that over the past 18 months, certain asset valuations have rebased – but it’s not always clear to what level.

Close collaboration between borrowers and lenders is becoming more critical than ever before in order to unlock the right structured financing solutions in the face of forthcoming debt maturities. Lenders need to work closely with sponsors to understand how business plans are evolving in light of the macroeconomic environment.

A lot of what is seen in the market today is focused on sectors with especially strong occupier fundamentals, and their ability both to capture rental growth in line with inflation and to access relatively liquid capital markets. Logistics, residential, student and select operational sectors, such as hospitality, are widely considered to offer resilient fundamentals. Marc Eden, Investment Director at Regal London, spoke of their decision to diversify across the beds sectors, from residential to student with hotels and later living in the mix too. Continuing the earlier theme, Richard Craddock, Managing Director in LaSalle’s Debt Investments team, explained that “elephants are going to the same few watering holes – beds, sheds and, selectively, ‘meds’”.

This is resulting in a reasonable degree of liquidity for originating new financings in those preferred sectors. In that context, a lender’s geographic scope and ability to deploy across borders offers flexibility to be more selective. Debt funds may also benefit from access to differentiated pockets of debt capital, from senior lending to mezzanine debt to development / refurbishment financing. Borrower demand for bespoke financing solutions makes this an attractive environment in which to be active and to deploy a broad range of capital across diverse market opportunities.

Outside of those preferred sectors, the consensus view seemed to be that the traditional sectors of offices and retail were most challenged, particularly for offices outside of Prime CBD where valuations were deemed not to have yet caught up with the cloud of uncertainty surrounding future occupier demand. A few participants with significant exposure to the office sector acknowledged that much of their time was consumed with managing their book. A key takeaway from this part of the conversation was that, regardless of sector, modern real estate is more operational, and lenders look beyond the assets themselves through to the sponsors. As with the period post-GFC, the market will see a flight to quality of assets and sponsors.

The discussion closed with a debate on the willingness of lenders – and their underlying investors – to encourage borrowers to invest in environmental upgrades by offering economic incentives.

The valuation premium for assets with top-performing ESG credentials, particularly in the office sector, is widely understood. Lenders can therefore frame this question from a risk-adjusted return perspective: a greener building makes for better-quality collateral and therefore reduced risk. A similar logic applies at the owner/occupier level. Jonathan Seal, CEO of Regal London explained that in his discussions with potential office occupiers, wellness, energy efficiency and the associated sustainability accreditations were incredibly important to draw people back to the workplace.

However, because of the opaque relationship between a building’s sustainability performance, the costs of refurbishment and the impact on cashflows and valuation, this requires a deep understanding by all parties of real estate fundamentals, asset carbon / ESG performance and how to underwrite specific assets and their associated business plans.

The conversation on ESG highlighted two key inter-linked challenges: metrics and data. There was consensus among participants – borrowers and lenders alike – that assets with better ESG credentials intuitively offer better risk profiles. However, due to the embryonic nature of some metrics and an inconsistency in others as well as lack of transparency in data, especially for social and governance considerations, there was no common language to help differentiate risk and respective margins. This made it difficult to agree on who should provide the financial incentives for the transition of assets.

Overall, the conversation underlined one of the key characteristics of lending markets today. Real estate credit is currently a highly attractive asset class – but it’s only those lenders able to underwrite individual asset-level fundamentals in terms of quality, location and ESG specifications who are best placed to capitalise.

Our latest LaSalle European Cities Growth Index (ECGI) ranks European cities with the strongest economic prospects based on data inputs of economic growth, human capital, business risk and – for the first time – extreme heat.

The 2023 edition highlights the steady strong positions of both London and Paris, which are set to account for more growth than Europe’s next nine top-ranked cities combined. Interestingly, Paris has overtaken London as the top destination for venture capital funding for the first time since LaSalle began tracking this data in 2006, receiving particularly elevated levels of investment into its technology sector.

Nordic cities appear to have an increasing advantage due to demographic trends, a skilled workforce and world-leading pharma, industrial tech and creative industries; they account for a quarter of the top 20 cities. German cities have continued to perform strongly in the index despite slow population growth. On the other hand, Rome and other Italian cities’ rankings are most negatively impacted after a new factor accounting for extreme heat days was added to the ECGI this year.

Elsewhere, Prague and Warsaw have been identified as having promising growth prospects as more expats return and high-skilled workers remain, with this “brain gain” leading them to their highest scores since the global financial crisis. The index also reflects that Warsaw is becoming an attractive place for employment in the technology sector and Prague is forecast to benefit from a jobs boom.

INVESTMENT MANAGEMENT

Value-add investing in Canada

Realizing the value of Canadian real estate

A robust real estate market

Canada is of the few AAA sovereign markets with a sizable and transparent real estate market. G7 leading population growth, a highly educated workforce and a service-oriented economy all point to continued demand.

Multi-sector exposure

The value-add team in Canada focuses on building diversified portfolios of assets where user demand is strongest but supply is insufficient. The team is also able to pivot with changing market conditions.

Active asset management

LaSalle’s Canadian asset management team drives returns in our portfolio of assets. By identifying opportunities for value creation and execution, the team seeks to manage downside risk and aims to realize income and value for investors.

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Strategic, research-based approach

The ability to harness and synthesize information is key to the success of the Canadian value-add team. They regularly draw on the expertise of LaSalle’s data-driven, in-house Research and Strategy team, who are actively involved in advising on strategy and investment decisions.

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For a full description of the risks associated with investing in any opportunity, please refer to the “Summary of Risks” in the relevant offering memorandum.

Sustainability

LaSalle recognizes that ESG factors, when properly applied, can positively influence investment performance. We tailor our approach to each fund and each asset, working to protect and enhance financial returns today and in the future. We are proud to have achieved a score of A+ from the UN PRI for both strategy and governance and property. We have also committed to being a net zero carbon firm by 2050.

By working to improve energy efficiency, lower emissions and capture resources such as sunlight and rainwater, we’re improving performance today and building a better tomorrow. 

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Explore value-add assets in Canada

Office

2 & 30 International Boulevard

Modern flex-office near Canada’s largest international airport

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Residential

East York Apartments

Toronto multifamily complex

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Retail

Mission Junction Shopping Centre

A dominant grocery-anchored shopping center in Mission, British Columbia

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Industrial

Southern Ontario Industrial Portfolio

Six industrial assets across southern Ontario

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Industrial

Toronto Airport Mid-Bay Industrial Portfolio

An eight-building portfolio near Pearson International Airport

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The LaSalle value-add investments team, Canada

Michael Fraidakis

Chief Investment Officer, Canada

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Trevor Thompson-Harry

Deputy Fund Manager, Value-add Strategies

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Amy Barsich

Managing Director, Fund CFO

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Chris Langstaff

Canada Head of Research and Strategy

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LaSalle Canadian value-add investment news

May 08, 2024 LaSalle Bolsters Senior Leadership Team in Canada Michael Fraidakis joins firm as Head of Alternative Investment Strategies and Chief Investment Officer, Canada.

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Oct 17, 2022 LaSalle BVK Canada Advantage Acquires Toronto Mid-Bay Industrial Portfolio, Multifamily Property 5 min read LaSalle Investment Management (“LaSalle”) announced its fifth Canadian value-add real estate fund in Canada, LaSalle BVK Canada Advantage (“BVK Advantage” or “the fund”), expanded its portfolio through the acquisitions of a mid-bay industrial portfolio and multifamily property.

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Jan 24, 2022 LaSalle completes final close of fifth Canadian value-add fund at over C$300m 4 min read LaSalle Investment Management (“LaSalle”) today announced it completed the final close of LaSalle Canadian Income & Growth Advantage Fund (“CIG Advantage”, the “Fund”) at an aggregate total of C$306 million.

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INVESTMENT MANAGEMENT

Value-add investing in Europe

Realizing the value of European real estate

Diversified investment strategy

The strategy is focused on secular growth opportunities in key Western European markets, in particular the living, life sciences, wellness and distribution sectors.  We maintain the flexibility to seek out dislocation opportunities in other sectors when they arise.

Dedicated team, extensive experience

The team is comprised of over 20 professionals and the senior leadership has an average of over 20 years’ experience. To ensure alignment of interest, LaSalle employees co-invest in the strategies.

Active asset management 

LaSalle’s Asset Management team plays a key role generating returns in the portfolio. We create value through repositioning and developing assets, formulating portfolio aggregation strategies and through our deal-sourcing network, with the majority of acquisitions conducted off-market.

Discover Asset Management

Strategic, research-based approach

The ability to harness and synthesize information is key to the success of the European value-add team. We regularly draw on the expertise of LaSalle’s data-driven, in-house Research and Strategy team, who is actively involved in advising on strategy and investment decisions.

Read our insights

For a full description of the risks associated with investing in any opportunity, please refer to the “Summary of Risks” in the relevant offering memorandum.

Explore value-add assets in Europe

Residential

Fulton & Fifth

A high-quality residential-led development located in the Wembley are of London with a wide range of amenities and community benefits

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Office

Maison Bayard

A landmark office building in central Paris with realized development potential

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Niche

Met House

An education building in the vibrant East London district of Whitechapel.

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Sustainability

LaSalle recognizes that ESG factors, when properly applied, can positively influence investment performance. We tailor our approach to each fund and each asset, working to protect and enhance financial returns today and in the future. We are proud to have achieved a score of A+ from the UN PRI for both strategy and governance and property. We have also committed to being a net zero carbon firm by 2050.

Learn about our impact

The LaSalle value-add investments team, Europe

Michael Zerda

Head of Debt and Value-Add Strategies, Europe

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Blake Loveless

Head of Value-Add Investments

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Chris Lewis

Managing Director, Value-Add Investments

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Kevin Kong

Director, Value-Add Investments

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Gary Moore

Head of International Accounts, Europe

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LaSalle European value-add investment news

Nov 21, 2024 LaSalle and Urbania launch Spanish living joint venture delivering over 850 PBSA and flex-living beds in Barcelona LaSalle and Urbania have received building permits for a 14,500 sqm student accommodation development, slated for opening in September 2025.

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Nov 11, 2024 The Amp secures additional 19,000 square feet from London College of Contemporary Arts Expansion of LCCA footprint takes The Amp to near-full occupation in just two years.

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Sep 03, 2024 LaSalle and Trilogy bring De Montfort University to education and innovation campus in East London De Montfort will take 18,000 square feet, taking The Amp’s total occupancy to 83% since its opening last September.

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INVESTMENT MANAGEMENT

Value-add investing in the United States

Realizing the value of US real estate

Multi-sector exposure 

The US value-add team focuses on building diversified portfolios of assets where user demand is the strongest, but supply is insufficient: residential, industrial, life science and medical office. They are able to pivot with changing market conditions.

Dedicated team, meaningful alignment

The US value-add team is comprised of over 15 professionals who are dedicated solely to the value-add investing platform. To ensure alignment of interest, LaSalle employees co-invest in the strategies.

Active asset management 

LaSalle’s Asset Management team plays a key role generating returns in the portfolio of assets. They create value through repositioning assets, managing risk-mitigated ground-up development and executing portfolio aggregation strategies, with the vast majority of acquisitions conducted on an off-market basis. 

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Strategic, research-based approach

The ability to harness and synthesize information is key to the success of the US value-add investments team. They regularly draw on the expertise of LaSalle’s data-driven, in-house Research and Strategy team, who are actively involved in advising on strategy and investment decisions.

Learn more

For a full description of the risks associated with investing in any opportunity, please refer to the “Summary of Risks” in the relevant offering memorandum.

Sustainability

LaSalle recognizes that ESG factors, when properly applied, can positively influence investment performance. We tailor our approach to each fund and each asset, working to protect and enhance financial returns today and in the future. We are proud to have achieved a score of A+ from the UN PRI for both strategy and governance and property. We have also committed to being a net zero carbon firm by 2050.

By capturing more data on energy efficiency, emissions and other metrics such as resource capture and community benefits, we’re tracking our improvements. In helping investors meet their own sustainability goals, we aim to realize both superior performance and a better tomorrow.

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The LaSalle value-add investments team, United States

Jeffrey Shuster

President, LaSalle Value Partners US

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Ty Spearing

Head of Asset Management and Dispositions

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Amanda Hassan

Senior Vice President, Value-add Investments

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Michelle Gottlieb

Senior Vice President, Asset Management

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Zachary Bublitz

Senior Vice President, LaSalle Value Partners US

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Brian Wilkinson

Senior Vice President, Asset Management

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Brian Gorz

Chief Financial Officer

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Joseph Diamond

Portfolio Controller

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LaSalle US value-add investment news

Apr 29, 2024 Jeffrey Shuster named President of LaSalle Value Partners US; will lead US high-return strategies In his new role, Jeffrey will lead LVP US, LaSalle’s flagship value-add fund series in the United States and spearhead LaSalle’s expansion of high return investment offerings in the U.S.

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Aug 05, 2020 Jeff Shuster Joins LaSalle as Managing Director for its US Value-Add Fund Series 3 min read LaSalle Investment Management (“LaSalle”) today announced that its U.S. value-add fund series, LaSalle Income & Growth, has bolstered its investment team with the hiring of Jeff Shuster as Managing Director and Senior Acquisitions Officer.

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Feb 22, 2019 LaSalle Acquires Value-Add Multifamily Asset in Dallas 4 min read LaSalle Investment Management (“LaSalle”) today announced that its U.S. value-add fund, LaSalle Income & Growth Fund VII (“Fund VII”), has acquired Rienzi at Turtle Creek, a 152-unit high-rise rental apartment community in the affluent Turtle Creek submarket of Dallas, Texas.

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FOR INTENDED INSTITUTIONAL INVESTORS ONLY – NOT FOR GENERAL PUBLIC DISTRIBUTION

INVESTMENT MANAGEMENT

LaSalle Debt Investors

Investing in commercial real estate debt in growth markets across the US.

Focus on growth markets 

The team invests in tactical opportunities in select American markets. Some of the attributes they look for are barriers to new development, sustained job growth and regions with diverse economies.

Secure asset class with a low default rate 

Short-term real estate debt has historically had a low default rate, particularly in the growth markets where the team invests.

Strong access to deal flow 

A strong reputation in the market based on quick and efficient closing has allowed the LaSalle Debt Investors team to build solid, long-term relationships with sponsors. Currently over 40% of sponsors are repeat borrowers.

Integrated origination and underwriting 

The integrated nature of LaSalle’s origination and underwriting team help to provide end-to-end confidence in the assets, the sponsors and the projects loans are meant to fund.

Continuous and proactive in-house asset management 

Unlike some lenders, asset management is not outsourced. The team monitors both finances and renovations, with regular site visits and quarterly reporting on progress embedded into the process.

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Strategic, research-based approach

The ability to harness and synthesize information is key to the success of the LaSalle Debt Investors team. They regularly draw on the expertise of LaSalle’s data-driven, in-house Research and Strategy team, who are actively involved in setting strategy and making investment decisions.

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Looking to borrow money for your real estate project? Visit our alternative lending solutions page.

The LaSalle Debt Investors team

Glenn Sonnenberg

Executive Chairman

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Chip Sellers

Executive Vice President

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Craig Oram

Portfolio Manager and President, LaSalle Debt Investors

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Luke Mehring

Senior Vice President

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Mark Milovic

Managing Director, Head of US Debt Originations

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Melody Zaghi

Vice President

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James Lee

Senior Vice President

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LaSalle news

Jan 10, 2025 LaSalle provides a £68.7 million green loan for Vita’s 540-bed PBSA scheme in central Birmingham Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.

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Jan 06, 2025 LaSalle acquires Tempe Commerce Park in Metro Phoenix, Arizona The five-building industrial complex was acquired on behalf of the LaSalle Property Fund.

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Dec 12, 2024 LaSalle’s ISA Outlook 2025: Potential structural changes and distinctive cyclical patterns offer APAC opportunities It comes as interest rates are down and economic growth concerns have begun to fade, but new risks are on the horizon.

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FOR INTENDED INSTITUTIONAL INVESTORS ONLY – NOT FOR GENERAL PUBLIC DISTRIBUTION

INVESTMENT MANAGEMENT

Debt investments, Europe

Investing in European real estate credit

Experienced, pan-European team

Our European Debt Investment team is comprised of over 20 investment professionals representing 9 nationalities with a broad range of credit investing experience.

Broad range of debt strategies 

We provide creative and bespoke financing solutions, including senior debt, whole loans, mezzanine debt and development lending.

Proprietary sourcing channels 

We have a long-standing track record of repeat business with market leading sponsors across Europe. Over the past decade we have built a strong reputation for providing quick and efficient financing solutions to our sponsors.

Strategic, research-based approach 

We regularly draw on the expertise of LaSalle’s data-driven, in-house Research and Strategy team, who are actively involved in advising on strategy.

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For a full description of the risks associated with investing in any opportunity, please refer to the “Summary of Risks” in the relevant offering memorandum.

Sustainability

LaSalle recognizes that ESG factors, when properly applied, can positively influence investment performance. We tailor our approach to each fund and each asset, working to protect and enhance financial returns today and in the future. We are proud to have achieved a score of A+ from the UN PRI for both strategy and governance and property. We have also committed to being a net zero carbon firm by 2050.

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Looking to borrow money for your real estate project? Visit our alternative lending solutions page.

The LaSalle European Real Estate Debt Investments team

Michael Zerda

Head of Debt and Value-Add Strategies, Europe

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David White

Head of Real Estate Debt Strategies, Europe

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Nathan Jackson

Director, European Debt Investments

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Bobby Fay

Director, European Debt Investments

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LaSalle European Debt Investments news

Jan 10, 2025 LaSalle provides a £68.7 million green loan for Vita’s 540-bed PBSA scheme in central Birmingham Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.

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Nov 05, 2024 LaSalle supports OneIM and Foundation Partners’ acquisition of two UK holiday parks through £123 million debt financing The Somerset and Yorkshire holiday parks benefit from proximity to the coast, lakes and local amenities, and collectively comprise around 4,300 pitches.

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Jun 04, 2024 LaSalle announces €150 million refinancing of Brookfield European logistics portfolio The loan will refinance a portfolio of 17 big-box logistics assets across Europe owned by Brookfield through its private real estate funds.

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INVESTMENT MANAGEMENT

LaSalle Global Solutions

Accessing global indirect real estate through public equities and private structured vehicles

Funds 

The LaSalle Global Solutions team can construct customized portfolios of listed and/or unlisted real estate funds designed to meet investor needs and risk tolerances. Fund portfolios typically give investors access to a diversified set of assets within existing and efficient structures. 

Joint ventures 

Available to select investors where their funds are invested alongside either LaSalle’s funds or those of other real estate operators. In these investments, both parties usually (but do not always) have an equal share in decision making.

Co-investments and club deals 

Co-investment and club deal opportunities are suitable for a range of investors where their funds are invested alongside the funds of other LaSalle clients. In these arrangements, each party will typically have voting rights equal to their overall contribution to the investment.

Secondaries 

We can secure opportunities to acquire interests in funds on an opportunistic, discounted basis or as a way to accelerate investment into a fund with a long queue. In either case, clients benefit by capturing value not available in the normal course of property acquisitions and fund investing.

Bespoke mandates 

The multi-disciplinary Global Solutions team can construct bespoke mandates from a combination of any of the above strategies, as well as publicly traded securities (REITs). This approach allows the team to build portfolios that aim to capture attractive real-time relative value across sectors and geographies.

Commingled investments 

The LaSalle Global Solutions team offers a commingled investment fund that seeks out attractive investments we believe are priced below their fair market value. Through indirect ownership and using an open architecture framework, the Fund maximises the opportunities available to its investors.

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Sustainability

At LaSalle Global Solutions, we believe that responsible investment requires a detailed understanding of sustainability issues.

We work with our partners and advisors to seek to ensure the real estate industry plays a key role in addressing the world’s sustainability challenges. We believe that through our commitment to sustainability and its complexities we will continue to deliver our clients’ investment objectives.

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Explore the LaSalle Global Solutions portfolio

Industrial

20 Tuas South Avenue

Three industrial buildings in a well-located district of Singapore

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Niche

Princes Street hotel

A proposed top-tier hotel in the centre of Edinburgh’s Old Town.

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The LaSalle Global Solutions team

Lisa Kaufman

Head of LaSalle Global Solutions

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Catriona Allen

Senior Fund Manager

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Rachel Fenwick

Chief Operating and Financial Officer

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Jennifer Gaines

Deputy Global Portfolio Manager

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Eduardo Gorab

Managing Director, Global Research and Strategy

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Kathleen Jowett

Head of Sustainability, LaSalle Global Solutions

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Andrew Muscat

Global Head of Investor Accounting and Finance

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JB Park

Head of Investor Relations, Asia Pacific

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LaSalle Global Solutions news

Jan 10, 2025 LaSalle provides a £68.7 million green loan for Vita’s 540-bed PBSA scheme in central Birmingham Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.

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Jan 06, 2025 LaSalle acquires Tempe Commerce Park in Metro Phoenix, Arizona The five-building industrial complex was acquired on behalf of the LaSalle Property Fund.

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Dec 12, 2024 LaSalle’s ISA Outlook 2025: Potential structural changes and distinctive cyclical patterns offer APAC opportunities It comes as interest rates are down and economic growth concerns have begun to fade, but new risks are on the horizon.

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INVESTMENT MANAGEMENT

LaSalle Securities

Customizable exposure to real estate ownership with the liquidity of tradable securities.

Opportunistic 

The opportunistic strategy is a highly focused, tactical portfolio focused on select opportunities with highly compelling valuations.

Investment guidelines

• 10-20 names
• Absolute return
• Benchmark unaware

Completion 

The completion securities strategy accesses non-traditional property sectors not easily accessible through direct real estate. 

Investment guidelines

• 15-30 names
• Determine eligible property sectors
• Custom benchmark

Conventional 

The conventional strategy takes an active management approach in seeking to identify the most attractively valued real estate stocks.

Investment guidelines

• 60-90 names
• Relative return
• Benchmark aware

Core

The core strategy pursues a lower risk profile than the investment universe.

Investment guidelines

• 50-80 names
• Screen for high risk factor
• Benchmark aware

Underlying investments in real estates are speculative and involve special risks, and there can be no assurance that the investment objectives will be realized or that suitable investment opportunities will be identified. There is no guarantee that the investment strategies described herein will perform as expected.

Sustainability

LaSalle Securities’ approach is based on active management – properly valuing all aspects of a company, including ESG, and focusing on improving deficiencies and creating value as a result.

We consider ESG factors in our projection of a company’s earnings, our determination of the risk/required return for a company’s real estate, business model, management capabilities and our determination of the long term growth potential of the company’s earnings. We create a proprietary ESG score for each company which is factored into each company’s franchise or platform value.

In addition to integrating ESG in our investment process, we play an active role in championing the continued improvement of corporate ESG initiatives via proxy voting and direct dialogue with company boards and senior management.

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The LaSalle Global Securities team

Lisa Kaufman

Head of LaSalle Global Solutions

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Matthew Sgrizzi

Chief Investment Officer, LaSalle Global Solutions

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Benjamin Lentz

Chief Investment Officer, Global Quantitative Strategy

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Paul Meierdierck

Securities Global Portfolio Manager

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Christopher Battista

Senior Product Manager, LaSalle Global Solutions

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Yelena Diggs

Senior Product Manager, LaSalle Global Solutions

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Scott McWilliams

Director of Operations, LaSalle Global Solutions

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LaSalle news

Jan 10, 2025 LaSalle provides a £68.7 million green loan for Vita’s 540-bed PBSA scheme in central Birmingham Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.

Learn more

Jan 06, 2025 LaSalle acquires Tempe Commerce Park in Metro Phoenix, Arizona The five-building industrial complex was acquired on behalf of the LaSalle Property Fund.

Learn more

Dec 12, 2024 LaSalle’s ISA Outlook 2025: Potential structural changes and distinctive cyclical patterns offer APAC opportunities It comes as interest rates are down and economic growth concerns have begun to fade, but new risks are on the horizon.

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FOR INTENDED INSTITUTIONAL INVESTORS ONLY – NOT FOR GENERAL PUBLIC DISTRIBUTION

INVESTMENT MANAGEMENT

Value-add investing across Asia Pacific

Realizing the value of Asia Pacific real estate.

Asia Pacific real estate 

The Asia Pacific region represents over half of the world’s population and over 40% of its GDP. Structural demand drivers in the region have been supportive of both rents and capital values. We do not expect this trend to change in the near term.

Disciplined investment approach 

The strategy focuses on developed Asia Pacific economies and liquid markets where there is opportunity to create value through repositioning assets and de-risked development. LaSalle’s end goal is to create core assets that will meet long-term investor demand.

Active asset management 

LaSalle’s Asia Pacific asset management team is located across the region and plays a key role in helping to generate returns in the Asia Pacific value-add portfolio of assets. The team has more than 60 investment professionals led by a senior management team which has more than 20 years of experience.

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Strategic, research-based approach 

The ability to harness and synthesize information is key to the success of LaSalle’s Asia Pacific value-add investment team, which regularly draws on the expertise of LaSalle’s data-driven, in-house Research and Strategy team in setting strategy and making investment decisions.

Learn more

For a full description of the risks associated with investing in any investment opportunity, please refer to the “Summary of Risks” the relevant offering memorandum.

Sustainability

LaSalle recognizes that ESG factors, when properly applied, can positively influence investment performance. We tailor our approach to each fund and each asset, working to protect and enhance financial returns today and in the future. We are proud to have achieved a score of A+ from the UN PRI for both strategy and governance and property. We have also committed to being a net zero carbon firm by 2050.

Learn more

*Add source to confirm leading in peer group for sustainability

Important sustainability information

The LaSalle value-add investments team, Asia Pacific

Marc Montanus

Senior Managing Director, Fund Management

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Yen Tjin Chan

Senior Managing Director, Fund Management

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Kunihiko (‘Nick’) Okumura

Chief Executive Officer, Japan

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Claire Tang

Head of Greater China

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LaSalle News

Jan 10, 2025 LaSalle provides a £68.7 million green loan for Vita’s 540-bed PBSA scheme in central Birmingham Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.

Learn more

Jan 06, 2025 LaSalle acquires Tempe Commerce Park in Metro Phoenix, Arizona The five-building industrial complex was acquired on behalf of the LaSalle Property Fund.

Learn more

Dec 12, 2024 LaSalle’s ISA Outlook 2025: Potential structural changes and distinctive cyclical patterns offer APAC opportunities It comes as interest rates are down and economic growth concerns have begun to fade, but new risks are on the horizon.

Learn more

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INVESTMENT MANAGEMENT

LaSalle Global Navigator Fund

A “one-stop-solution” for diversified global real estate.

Commingled equity funds

Rationale: Provides efficient access, liquidity and diversification

Implementation: Closed and open-ended funds managed by established operators, accessible via primary and secondary trades

Target allocation: 30-40%

Joint ventures, clubs and co-investment deals

Rationale: Provides potential access to large transactions and experienced operating partners

Implementation: On-market and off-market opportunities leveraging existing relationships with operating partners and the potential to invest alongside other LaSalle clients

Target allocation: 30-40%

Debt strategies

Rationale: Provides exposure to whole loan and mezzanine debt, providing attractive cash flow, and risk-adjusted returns with downside protection

Implementation: Leverage existing LaSalle GPS and broader LaSalle relationships with high-quality borrowers and senior lending partners

Target allocation: 15-25%

Listed securities

Rationale: Provides access to real estate fundamentals through listed property companies to capture value, maintain some liquidity and access specialist sectors

Implementation: Utilize LaSalle’s Global Securities team for stock selection and trade execution

Target allocation: 5-10%

Target allocations are hypothetical and there can be no assurance they will be realized. Target allocations show the average range targeted by the Fund and are as of the date of this presentation and subject to change without notice. No investment strategy or methodology can reduce all risks of investing in the Fund. For a full description of the risks associated with investing in the Fund, please refer to the “Summary of Risks” the offering memorandum.

Sustainability

The four-star GRESB rating the LaSalle Global Navigator Fund has achieved only conveys a small part of our commitment to sustainability: every day we work to improve the long-term sustainability performance of the buildings in which we invest.

By engaging with our partners and capturing more data on energy efficiency, emissions and other metrics such as resource capture and community benefits, we’re tracking our improvements. And in helping investors meet their own sustainability goals, we aim to realise both superior performance and manage ESG risks.

Learn about our impact

LaSalle Global Navigator Fund example investments

Co-investment

• Core-plus residential strategy
• Multi-family apartments
• Brooklyn, New York, USA
• Unlisted equity investment

Open-ended fund investment

• Value-add residential strategy
• Specialist disability accommodation
• Multi-location, Australia
• Unlisted equity investment

Open-ended fund investment

• Core-plus logistics strategy
• Primary and secondary logistics and industrial assets
• Multi-location, Europe
• Unlisted equity investment

Closed-end fund investment

• Core-plus whole loan strategy
• Multi-location, Northern Europe
• Unlisted debt investment

The LaSalle Global Navigator Fund team

Daniel Witte

Chief Investment Officer, Structured Investments

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Catriona Allen

Senior Fund Manager

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Rachel Fenwick

Chief Operating and Financial Officer

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JB Park

Head of Investor Relations, Asia Pacific

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Eduardo Gorab

Managing Director, Global Research and Strategy

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Kathleen Jowett

Head of Sustainability, LaSalle Global Solutions

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Make sure you’ve spelled everything correctly, or try searching for something else. If you still can’t find what you’re looking for, you can always Contact us to talk to someone.

LaSalle news

Jan 10, 2025 LaSalle provides a £68.7 million green loan for Vita’s 540-bed PBSA scheme in central Birmingham Located on Gough Street, the asset will benefit from excellent rail, bus and tram links and help address the undersupply of student housing in the market.

Learn more

Jan 06, 2025 LaSalle acquires Tempe Commerce Park in Metro Phoenix, Arizona The five-building industrial complex was acquired on behalf of the LaSalle Property Fund.

Learn more

Dec 12, 2024 LaSalle’s ISA Outlook 2025: Potential structural changes and distinctive cyclical patterns offer APAC opportunities It comes as interest rates are down and economic growth concerns have begun to fade, but new risks are on the horizon.

Learn more

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INVESTMENT MANAGEMENT

Custom accounts

Fully customized portfolios suitable for larger investors.

Absolute return

Custom accounts with an absolute return mandate aim to outperform a specific target, which is reviewed on a regular basis and agreed with the investor.

Long income

Long income mandates aim for a return above inflation or government bonds over the long term; they can be comprised of index-linked leased property, or of a more diversified portfolio, where rental growth is linked to inflation and tends to exclude volatile sectors and locations.

Relative return

Each investor mandate with a relative return target has the objective of meeting a performance target relative to an MSCI benchmark over a certain period.

Tactical

Tactical mandates typically have a specific return expectation, focus and timeframe that varies based on the requirements of the investor.

Active asset management

LaSalle’s asset management team plays a key role in our strategy to generate returns for our investors. By suggesting and managing improvements to properties, they both seek to mitigate downside risk and unlock income and value.

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Strategic investment approach

Investment Managers works hand-in-hand with LaSalle’s Research and Strategy team, helping to develop investment strategy and make sound transactional decisions.

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For a full description of the risks associated with investing in real estate, please refer to the “Summary of Risks” in the relevant offering document, where applicable.

Sustainability

LaSalle believes that ESG has an essential, material influence on investment performance. We tailor our approach to each custom account and asset, working to protect and enhance financial returns today and in the future. We are proud to have achieved a score of A+ from the UN PRI for both strategy and governance and property. We have also committed to being a net zero carbon firm by 2050.

By capturing data on energy efficiency, emissions and other metrics, we’re tracking our improvements. In helping investors meet their own sustainability goals, we aim to improve performance today and build and a better tomorrow.

Learn more

Explore LaSalle custom account assets

Industrial

Atlanta logistics portfolio

Four newly constructed, Class A logistics warehouses located across suburban Atlanta, Georgia

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Office

Sixty London Wall

Grade A office accommodation with excellent sustainability credentials

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Residential

Pier 8 at The Preserve

A luxury apartment community in suburban Tampa

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Office

222 Exhibition Street, Melbourne

An award-winning, showpiece office tower in Australia’s second-largest city

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Office

2020 K Street

A downtown Washington office property with strong sustainability credentials

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The LaSalle custom accounts team

Adam Donahue

Head of Custom Accounts, Asia Pacific

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Steve Inglis

Portfolio Manager, US Custom Accounts

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Steven Lieb

Portfolio Manager, US Custom Accounts

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Gary Moore

Head of International Accounts, Europe

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Sophie Simmonds

Managing Director, UK Custom Accounts

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LaSalle custom accounts news

Aug 28, 2024 LaSalle acquires Motel One hotel on Tower Hill LaSalle has acquired a modern, 291-bedroom hotel in the City of London on behalf of a UK Custom Account client.

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Jan 29, 2024 Alexandre Arhuis-Grumbach promoted to Head of Transactions Europe, Core and Core+ Strategies, at LaSalle Alexandre will oversee all transactions, across LaSalle’s core and core+ commingled funds and custom accounts in Europe.

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Jan 25, 2024 LaSalle appoints Multiplex to construct landmark London office development, One Exchange Square The state-of-the-art, 447,000 square foot office development is located at Broadgate Campus in the City of London.

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