LaSalle is one of the world’s leading real estate investment managers, with more than $65bn of assets under management globally (as of Q2 2020). LaSalle sponsors a complete range of investment vehicles spanning the risk-return spectrum, and the firm’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. We are solely focused on real estate, which enables us to fulfil our primary objective of delivering competitive investment performance, along with the highest levels of client service.
The divisions of our business are as follows:
LaSalle is a global investment manager which only invests in real estate, bringing a unique focus and depth of expertise to the sector, where we pursue specific investment strategies across the risk-return spectrum (core, core+, value-add, opportunistic). LaSalle operates in 15 countries and 22 offices worldwide. As an independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies, we have a presence in every region of the world in which we invest.
Debt & Special Situations
Europe. LaSalle’s European Debt & Special Situations division pro- vides its borrowers with a wide range of financing solutions by actively investing through its four strategies: LaSalle Real Estate Debt Strategies, LaSalle Residential Finance, LaSalle Whole Loan Strategies and Special Situations. Debt products include whole loads, mezzanine, development financing, stretched senior loans, preferred/joint- venture equity in the UK and Western Europe.
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 – Indirect Investing
LaSalle Global Partner Solutions (LaSalle 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-investments and secondaries.
Global Real Estate Securities
LaSalle’s Real Estate Securities programme gives institutional and individual 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.
INDUSTRIAL: Domestic demand, supply-chain efficiencies and e-commerce growth have been the key drivers of robust logistics demand over the past 10 years. Accelerated e-commerce and online grocery sales have cushioned the negative impacts of slowing economies and declining global trade. However, there are downside risks to the logistics sector should COVID -19 persist well into H2 2020 or beyond. Traditional offline retailers, representing a notable proportion of logistics demand, are the most impacted by the pandemic. In Europe, retailers accounted for 29% of logistics demand, and third-party logistics operators, which serve both offline and online businesses accounted for a further 37%. Logistics in dominant hubs and urban locations where supply is highly constrained are expected to have the strongest rental growth potential.
OFFICE: The near-term outlook for the office sector is considerably less certain than what it was prior to the pandemic. Business leaders have largely viewed the remote working experiment as a success and overall will be requiring less space going forward. The low levels of leasing activity seen during lockdown will not persist long into 2021. Both the depth of tenant demand from a wide variety of sectors, and companies’ preference for high-quality space in accessible locations are expected to persist in the major markets. However, we do expect a market polarised by space quality to emerge, dampening rental expectations in the near term. Furthermore, with the twin challenges of a major recession and the more widespread adoption of remote working hanging over office markets in Europe, office investment opportunities will need to be priced carefully.
RESIDENTIAL: The residential sector offers defensive investment characteristics, benefitting from resilient cash flows with inflation protection and the ability to actively manage rents in order to maintain occupancy. Looking ahead, positive demographics (growing population and number of households), urbanisation, the structural undersupply in housing, unaffordability of home ownership and increased interest in more flexible living solutions will continue to support long- term demand for rented residential. Given the defensive characteristics of this sector, there is likely to be limited pricing discount and continued rental growth expectations compared to pre-COVID levels.
RETAIL: The European retail sector was facing structural challenges before COVID -19. It was characterised not only by online sales and rising costs impacting both sales and profits but also by changing consumer behaviour. The result was an increase in store closures and insolvencies, rising vacancy rates within shopping centres, negative investor sentiment and ultimately a correction in pricing. These trends first emerged in the UK but have recently spread to the Continent. The pandemic has subsequently accelerated and amplified the impact of these trends. Overall, rental growth is expected to be negative over at least the short term.
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.
The performance of the majority of LaSalle’s portfolios in Europe is measured by MSCI and many are typically compared to an appropriate IPD 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 continental European funds and Debt & Special Situations funds provide data to INREV. For a small number of private clients, LaSalle provided money-weighted returns calculated 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 absolute 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.
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. For the avoidance of doubt, 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 authorised and regulated by the Financial Conduct Authority in the United Kingdom.