LaSalle Completes Final Close of its Fifth Canadian Value-Add Fund at More Than C$300 Million
TORONTO (January 24, 2022) — 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. The Fund secured commitments from institutional European capital sources and includes a co-investment vehicle. This is LaSalle’s fifth Canadian value-add fund.
John McKinlay, CEO of LaSalle Canada: “Canada continues to stand out as an excellent market for transparent, income-driven investments for investors around the world. This closing highlights our past success and the trust we’ve built with investors to successfully execute our value-add strategy.”
Added Chris Lawrence, Sr. Managing Director and Head, Value-Add Strategies at LaSalle Canada: “As Canada’s economy continues to strengthen, we expect there to be significant opportunities in key property sectors that the Fund can capitalize on to drive returns for investors. We’re excited to build on our successful track record of value-add investing through a hands-on, active approach to sourcing, active asset management and realization.”
The Fund offers investors the expertise and knowledge of LaSalle’s established Canadian real estate platform which has been operating since 2000, and provides investors with the opportunity to access potential income and capital appreciation in Canada’s real estate market. CIG Advantage will target 17-19 percent gross returns.
The Fund’s investment strategy targets value-add real estate opportunities across multiple property sectors with a focus on properties that can be upgraded and repositioned as core. CIG Advantage will focus on Canada’s top six metro areas: Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal.
Continuation of Strong LaSalle Canada Performance
The final close of LaSalle Canadian Income & Growth Advantage Fund continues a strong year for LaSalle’s Canadian platform. LaSalle Canadian Income & Growth Fund IV completed three key dispositions totaling approximately C$160 million, bringing the fund closer to full liquidation as outlined in its strategy:
- 5515 North Service Road: An 86,000-square-foot Class A office property in Burlington, Ontario. The property was upgraded through a full elevator upgrade, a new main lobby, new common areas on each floor and a new HVAC system. The sale yielded a gross levered IRR of approximately 19 percent.
- 2 and 30 International: Two class A office properties in Toronto’s West End totaling more than 122,000 square feet. 2 International was demolished and built ground-up, and 30 International underwent extensive renovations, positioning these properties for stable occupancy of over 97 percent when sold. The sale yielded a gross unlevered IRR of approximately 12.7 percent.
- Mission Junction Shopping Centre: Fund IV sold the open-air, grocery-anchored retail space in Vancouver’s District of Mission. Purchased in 2016, the property was expanded and stabilized at 95 percent occupancy when sold. 75 percent of tenants were national tenants, compared with just 65 percent when the property was purchased. The sale yielded a gross IRR of approximately 15.5 percent.
Additionally, LaSalle Canada Property Fund (“LCPF”), LaSalle’s flagship core Canadian fund, made several marquee acquisitions including:
- A 50 percent stake in Maison Manuivie, a trophy office tower in Montreal, and Guildford Town Centre, a trophy retail asset in Vancouver with a parcel slated for multifamily development. LCPF purchased the portfolio from Ivanhoe Cambridge.
- A three-building, 610,000-square-foot logistics portfolio outside of Toronto.
- A 47.5 percent stake in the Rideau & Chapel multifamily development. The property will comprise a 27-story, 315-unit, Class A apartment property in downtown Ottawa.
About LaSalle in Canada
On an aggregate basis, LaSalle has executed more than C$7 billion in Canadian real estate since 2000, providing it with an in-depth understanding of the market. The formation of LCPF expanded LaSalle’s existing Canadian real estate product suite and investment vehicles, which include a series of closed-end commingled funds as well as separate accounts.
About LaSalle Investment Management
LaSalle Investment Management is one of the world's leading real estate investment managers. On a global basis, we manage approximately $77 billion of assets in private equity, debt and public real estate investments as of Q4 2021. The firm sponsors a complete range of investment vehicles including open- and closed-end funds, separate accounts and indirect investments. Our diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. For more information please visit www.lasalle.com and LinkedIn.
NOTE: This information discussed above is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made to certain qualified investors by means of a private placement memorandum or applicable offering document and in accordance with applicable laws and regulations. Past performance is not indicative of future results, nor should any statements herein be construed as a prediction or guarantee of future results.