Corporate overview

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 pen- sioners, 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 opportunities 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 sustainable growth markets throughout the US. Each transaction is underwritten 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 spec- trum by partnering with expert real estate operators through a variety of indirect investment vehicles. LaSalle GPS is an open-architecture invest- ment 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-investments, 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: Aggregate demand for industrial and logistics space means that 2022 is projected to be the second strongest year on record for European take-up. Prospects for continued e-commerce penetration growth in several countries suggest strong demand should be sustained. Construction remains constrained by land availability and regulation across Europe on building logistics schemes on green space. Most new developments remain owner-occupied or pre-let, contributing to single-digit market vacancy rates, in many cases rep- resenting all-time low vacancy levels. In all, logistics fundamentals remain very strong, even as tenants face increased costs from labour and energy prices.

OFFICE: Office take-up has been broadly in line with the five-year average so far in 2022. European office vacancy rates have remained below the long-term average of 7.5%. There remains uncertainty around how much and what sort of space occupiers will require in the long term, long leases and wait-and-see attitudes mean we do not yet have clarity on sustainable levels of office demand. It is clear that European office tenants want to occupy buildings that are on a pathway to net-zero carbon, which remain rare. The best quality, low-carbon office assets can outperform even so-called ‘prime’ rents, with those assets also the most in-demand from investors.

RESIDENTIAL: The fundamental imbalance of supply and demand for hous- ing continues to keep residential vacancy at very low levels and has put upward pressure on market rents across Europe. However, regulations limit the ability of landlords to capture this growth into net operating income. Regulatory systems that have tended to allow low and steady single-digit percent income growth rates still do so, but this is well below the double-digit inflation being experienced in much of Europe. Moreover, rent controls are getting tighter, as governments look for ways to relieve pressure on households. Unregulated markets, such as the UK, have performed strongly over 2022, with rental growth closer to or exceeding inflation.

RETAIL: Retail faces the additional strain of squeezed real consumer incomes, following two years of COVID -19 restrictions and continued growth of e-commerce. The lack of development in the sector for several years means the supply picture is on more solid footing, whilst the significant repricing already seen in retail assets leaves it less vulnerable to rising interest rates. Prospects are brightest for convenience-driven retail schemes, retail parks that act as hybrid multi-channel distribution nodes, and outlet centres that offer deep value to stretched consumers. Department stores and most malls remain in crisis.

OTHER: The more niche living sectors such as student housing, senior hous- ing and co-living, benefit from longstanding demographic trends, supporting occupier demand. They also typically offer a yield premium to traditional residential, and do not generally face limitations on rent increases. Other sectors such as life sciences, self storage and data centres benefit from a mix of robust, secular demand drivers. As capital market participants err towards a more ‘risk-off ’ approach, interest in these more emerging sectors could potentially recede for a time, despite their strong fundamentals.

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 

The performance of the majority of LaSalle’s portfolios in Europe is measured by MSCI and many are typically compared to an appropriate MSCI benchmark. However, increasingly portfolios are adopting a target relative to inflation or bonds, particularly in the UK. The independently calculated performance is thoroughly checked in-house by LaSalle as part of a multi-stage process. Where relevant, LaSalle’s funds provide data to INREV. For Debt and Value-add funds and a number of private clients, LaSalle provides money-weighted returns calcu- lated from independently audited financial data. 

Global Partner Solutions

Majority of the mandates are benchmarked against MSCI IPD All Balanced Funds index, according to client/mandate requirements. However, a number of mandates are using target returns of either an absolite target return or targets in line with RPI and/or INREV indices. LaSalle GPS performance is currently calculated by LaSalle in line with MSCI methodology.

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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.