LaSalle has been investing in one asset class since 1980: real estate. As of Q2 2022, we manage $82bn in assets on behalf of over 500 investors worldwide and are responsible for over 1,500 properties with a combined area of 27.2million sqm. Our 950+ employees are based in offices in 24 cities across 14 countries.
We are one of the world’s leading real estate investment managers, but we don’t just invest in buildings at LaSalle. We invest in insight-driven research, the intelligent use of technology and sustainable building practices. We embrace collaboration, seek out diverse perspectives, nurture a Culture of Care for our people and our communities, and champion thoughtful decision-making at every level.
Our investments benefit a wide range of pension plans, sovereign wealth funds, insurance companies and private investors around the world. The opportunities we create and uncover today are designed to align with their long-term investment objectives and benefit the thousands of pensioners, investors and other stakeholders that they represent.
The divisions of our business are as follows:
Private Equity
LaSalle’s private equity offerings are available within pooled vehicles and separate accounts, as country-specific, regional or global offerings, and span the risk-return spectrum (core, core plus, value-add, opportunistic).
Debt Investing Europe
LaSalle Debt Investments is one of Europe’s most active real estate debt providers. We have a long-standing track record of repeat business with market leading sponsors across Europe and provide investors with access to direct private lending opportuni- ties which are sourced, structured, and managed in-house. We offer sponsors a wide range of products, including senior debt, whole loans, mezzanine debt, development lending and other bespoke financing solutions.
US
LaSalle’s US debt platform is a commercial real estate bridge lender providing short-term, floating rate loans to middle-market commercial real estate sponsors. The group’s primary focus is on originating new bridge loans for value-add and transitional properties in sustaina- ble growth markets throughout the US. Each transaction is underwrit- ten with a bottom-up method through an equity owners’ lens making sure that all interests are aligned and there is a clear exit strategy.
Global Partner Solutions
LaSalle Global Partner Solutions (GPS) offers investors access to global investment opportunities across the risk spectrum by partnering with expert real estate operators through a variety of indirect investment vehicles. LaSalle GPS is an open-architecture investment platform that offers a range of opportunities across private, public, debt and equity quadrants, aiming to deliver durable, long-term income and attractive total returns through investments in funds, joint ventures, co-invest- ments, secondaries and bespoke mandates.
Global Real Estate Securities
LaSalle’s Real Estate Securities program gives investors a simple way to access the world’s traditional and niche commercial real estate sectors. With over 30 years in the industry, LaSalle is one of the most experienced real estate securities investment managers. Our dedicated team invests in real estate securities traded in North America, Europe and Asia Pacific for institutional and individual investors around the world, working closely with clients to design portfolios to suit their investment objectives and styles
Sector forecasts
INDUSTRIAL: The logistics sector in Asia Pacific remains resilient with low vacancy rates and positive rent growth in most major markets. Supply is projected to increase in most markets although rising construction and borrowing costs could cause some cancellations or delays. Rising interest rates in most markets (except China and Japan) are expected to weigh on returns. However, rent growth is projected to continue although at a moderating pace driven by rising supply, slowing economy, and rising operating costs of tenants. The bifurcation across markets is expected to widen. Markets with low projected availabilities and strong and/or diversified tenant bases are expected to outperform.
OFFICE: The office sector performance since the onset of the pandemic has reinforced LaSalle’s view that the net impact of a hybrid work model (with a tilt towards working in the office) on office demand in Asia Pacific is likely to be limited, as compared to other regions. Flight-to-quality continues to be the pri- mary demand driver in major office markets. Tenants continue to favour quality offices in locations with strong work-live-play attributes. Office remains an important allocation among Asia Pacific investors’ real estate portfolios.
RESIDENTIAL: The multifamily rental sector has held up well in major markets of China and Japan. Outside of Japan, multifamily rental is still an emerging sector in Asia Pacific. There are compelling reasons for this sector to become mainstream for institutional investors, including (but not limited to) expensive to own, urban migration for employment and educational opportunities, and government policy supports in several countries of the region. Supply is expected to increase in the next two to three years. Rising supply could bridge the gap between demand and supply, but is unlikely to lead to oversupply in the near term.
RETAIL: E-commerce disruptions, rising inflation and interest rates are major headwinds affecting the retail sector performance. Non-discretionary retail is expected to continue to outperform discretionary retail. After a rebound in transaction volume in 2021, bidding participation and transaction volume decreased drastically in 2022. Although we have not observed substantial price adjustments among retail assets across Asia Pacific, cap rates are expected to expand further in markets with rising interest rates over the near term.
OTHER: Markets with advanced re-opening, such as Australia and Singapore, have posted material increases in international visitors and reflected in their respective markets’ hotel recovery. Inflationary pressure on operating margins, rising interest rates, and withdrawals of government fiscal support could weigh on hotel owners’ profitability. There could be selective opportunities for price adjustments among financially weak owners.
Investment principles & strategy
Clients come first in our business and we use our fiduciary experience combined with our global scale and connected operating platform to deliver competitive performance. Our many long-standing clients trust LaSalle and often invest in multiple mandates with us around the globe. Our global research team and the experience of our fund managers, coupled with our ability to execute deals and actively manage assets, allows us to seek out robust returns for our clients. LaSalle’s in-house proprietary research gives our clients unique insight into global property markets. We invest heavily in market analysis and investment strategy, believing that a deeper understanding of market dynamics directly influences our ability to deliver competitive investment performance. The strength of the integrated relationship between research and investment teams is vital in generating ideas and investment opportunities for clients. Our Research & Strategy team identifies opportunities in the market, as well as develops client-specific strategies, providing direction to the investment teams, whose knowledge and network of contacts ensure LaSalle access to both on- market and off-market opportunities.
Performance verification
LaSalle’s property and investment level performance in Asia Pacific is benchmarked against target returns, according to client mandates/funds. These target returns of funds are referenced from appropriate indices where available, including indices published by ANREV.
Global Partner Solutions
GPS APAC mandates have absolute target returns. The targets are time weighted return based or IRR based. LaSalle GPS time weighted returns performance is currently calculated by LaSalle in line with MSCI methodology.
COMPLIANCE STATEMENT
The information contained herein is for the sole purpose of providing general information to institutional investors about LaSalle Investment Management and its affiliates. Certain information herein sets out general views of LaSalle Investment Management regarding certain property markets and types of property therein. No representation is made concerning the accuracy of the information compiled herein, and no guarantee or assurance is given that any forecast or opinion in these materials will be realised. This document does not constitute an offer to sell, or the solicitation of an offer to buy, and is subject to correction, completion and amendment without notice. The information contained herein is not investment advice and may not be construed as the promotion or marketing of any services or financial product sponsored or provided by LaSalle Investment Management or any of its affiliates. LaSalle Investment Management is authorized and regulated by the Financial Conduct Authority in the United Kingdom. LaSalle’s services consist of both regulated and unregulated activities. Direct investment in real estate does not constitute a regulated activity and as such falls outside the regulation of the Financial Conduct Authority.
