LaSalle Investment Management has raised over US$1.1 billion of equity for LaSalle Asia Opportunity V, exceeding the initial US$750 million target announced at the fund’s launch in August 2016.
The fifth in LaSalle’s series of closed-end, pan-Asia real estate opportunistic funds, the new vehicle has secured total commitments of US$1.15 billion. Around 85% of the total is assigned to the fund and 15% is targeted for co-investments.
The total capital was secured from 20 external institutional investors from Asia, Europe, the Middle East, and the United States, the firm announced today.
"Investors are drawn to this region for its healthy market fundamentals, risk-return diversification opportunities afforded by varying market cycles, and the rising demand for core assets," said Mark Gabbay, Chief Executive Officer and Chief Investment Officer – Asia Pacific, LaSalle. "The robust global investor demand for LaSalle’s opportunistic fund product in the region highlights…Asia Pacific’s emergence as one of the most attractive destinations for real estate investors globally."
The fund follows the same strategy as its predecessor fund, and seeks to take advantage of mis-priced assets with opportunities to add value via repositioning and redevelopment in target markets including Australia, China, Hong Kong, Japan, Korea and Singapore. The capital raised will provide buying power for approximately US$3.3 billion worth of assets.
The fund has invested approximately 37% of committed capital so far, and has a diversified portfolio of investments in major Asia cities such as Tokyo, Osaka, Nagoya, Singapore, Shanghai, Hangzhou, across multiple sectors, office, retail, hotel/service apartment and logistics.
LaSalle Asia Opportunity V is the successor fund to LaSalle Asia Opportunity IV, which committed US$585 million to a similar strategy and is expected to significantly outperform its target net return of 18%.
As of the first quarter, the fund has returned 89% of the equity deployed and since inception the fund’s returns are 39.1% IRR, it said in the announcement.
To-date, LaSalle has invested an aggregate of approximately US$11 billion on behalf of the LaSalle Asia Opportunity Series in over 150 investments and currently has a platform of 162 people in the Asia Pacific region, with offices in the Fund’s six target markets.