LaSalle Investment Management - Real Estate - Asia

2018 Top 100 Real Estate ranking: 19http://www.lasalle.com

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Manager Details

LaSalle

Corporate overview 

LaSalle is one of the world’s leading real estate investment managers, with over $67bn of assets under management globally (as of Q2 2019). 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: 

Private Equity 

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 17 countries and 24 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. 

LaSalle’s Debt Platform 

The European Debt & Special Situations division provides 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. Our debt products include whole loans, mezzanine, development financing, stretched senior loans, preferred/joint venture equity in the UK and Western Europe. 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 acquired the real estate Multi-Manager business of Aviva Investors in 2018. The existing London-based Global Indirect Business has been incorporated into a new global platform ‘LaSalle Global Partner Solutions’ with on the ground presence in London, New York, Chicago and Singapore, investing in funds, joint ventures, co-investments and secondaries. 

Securities 

LaSalle’s Real Estate Securities programme gives institutional and individual investors a simple way to access the world’s major commercial real estate markets and is one of the most experienced real estate securities investment managers. 

Sector forecasts 

LaSalle expects a much weaker macro environment than the past few years, partly due to the US-China trade war and the maturing global economic cycle. Uncertainty over the US-China trade war threatens global economy. Occupier demand is projected to be under downward pressure even without a global recession. As major central banks shift to monetary easing, capital market liquidity remains sufficient in the region. For core strategies, investors will need to focus on protecting the durability of cash flows. For higher-return strategies, seek out areas that could outgrow the broad economy over the medium and long term. LaSalle continues to favour Japan, and the regional logistics sector. 

OFFICE: Office market performance is expected to continue to diverge in the region. Submarket and location selection and asset quality are increasingly important. Under a slow growth environment, LaSalle continues to favour Melbourne and Sydney CBD offices, and Tokyo Grade B and Osaka Grade A offices for core strategies. For build-to-core or value-add-to-core strategies, LaSalle continues to favor DTU-rich (Demographics, Technology and Urbanisation- rich) locations in Tokyo, Melbourne, Sydney and Shanghai with muted supply pipeline and low exposure to export-oriented tenant base. 

INDUSTRIAL: We continue to favour the logistics sector in the region. This conviction is not only because of the fact that logistics demand is supported by domestic consumption and the growth of e-commerce, but also logistics rents are generally less volatile than those of offices. We view low rental volatility to be favourable in an environment of rising volatility. Furthermore, logistics development yields on cost generally offer 100-200bps above those stabilised market yields in the region, with China and South Korea at the higher end of the range. LaSalle therefore continues to favour build-to-core strategies in China and South Korea. 

RETAIL: The rise of e-commerce presents threat to the retail sector. We are in general cautious of retail in the region. However, selective retail properties in Japan and Singapore are expected to be least impacted by e-commerce within the region. However, due to negative investor sentiment towards the overall retail sector, liquidity of the sector has been reduced. Tenant mix, location selection, and entry pricing are increasingly important when considering retail investments. 

RESIDENTIAL: We continue to favour the Japan multifamily sector. In- migration has been and is expected to continue to drive occupier demand for urban multifamily properties in Tokyo, Osaka, Nagoya, and Fukuoka. The resiliency of Japan multifamily provides support for core and lease-up strategies. 

HOTEL: An area of strength under a slow-growth environment is Asian tourists. While the demand driver is supportive of the sector, supply is high in several markets. Therefore, location selection is critical, as well as identifying the hotel segment that match tourist profile. 

Investment principles & strategy 

Clients come first in our business and we use our fiduciary experience to deliver competitive performance. Our many long-standing clients trust LaSalle and often invest in multiple mandates with us around the globe. A global investment perspective, fostered by the insights of our global research team and the experience of our fund managers, coupled with our ability to execute deals and manage real estate, 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 bench- marked against target returns, according to client mandates/funds. These tar- get returns of funds are referenced from appropriate indices where available, including indices published by ANREV. 

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. For the avoidance of doubt, the information contained hereinis 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 Asia Pte Ltd is regulated by the Monetary Authority of Singapore.

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Head Office
9 Raffles Place
#37-01 Republic Plaza
048619
Singapore
Company website:
http://www.lasalle.com
Parent Company:
JLL
Year Founded:
1980

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