LaSalle Asia Opportunity V raises over US$1.1bn

By Paul Norman - Monday, April 16, 2018 11:15

LaSalle Investment Management has raised over US$1.1bn of equity for LaSalle Asia Opportunity V, exceeding the initial US$750m target announced at the fund’s launch in August 2016.

The fifth in LaSalle’s series of closed-end, pan-Asia opportunistic funds has secured total commitments of US$1.15bn, of which 85% 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.

Mark Gabbay, Chief Executive Officer and Chief Investment Officer – Asia Pacific, LaSalle, said: “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.

"The robust global investor demand for LaSalle’s opportunistic fund product in the region highlights not just Asia Pacific’s emergence as one of the most attractive destinations for real estate investors globally, but also our investors’ confidence in LaSalle’s excellent record in deploying capital and generating strong investment performance for our clients.”

LAO V follows the same strategy as its predecessor fund, and seeks to take advantage of mispriced 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$3.3bn worth of assets.

Marc Montanus, Fund Manager for the LaSalle Asia Opportunity Series, said: “I am delighted that we have exceeded our initial target and raised over US$1 billion; we appreciate the vote of confidence that our existing and new investors have placed in us with LAO V. The Fund has already demonstrated strong momentum with its investment activity and I look forward to announcing more updates throughout the year.”

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.

LAO V is the successor fund to LaSalle Asia Opportunity IV, which committed US$585m to a similar strategy and is expected to significantly outperform its target net return of 18%. As of Q1 2018, LAO IV has returned 89% of the equity deployed and since inception the Fund’s returns[1] are 39.1% IRR and 1.61x EM.

To-date, LaSalle has invested an aggregate of approximately US$11bn 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.

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