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 Investment Management is one of the world’s leading real estate investment managers, with $60.5bn of assets under management on a global basis. We are focused solely on one asset class: real estate. This enables us to fulfil our primary objective of delivering competitive investment performance, along with the highest levels of client service.

We have been active in both the private and public property markets across Europe and the Americas for over 35 years and in Asia Pacific for 15 years. We specialise in providing fully integrated real estate investment management services to a broad range of institutional investors including pension funds, corporations, endowments/foundations, insurance companies, sovereign wealth funds and individual investors. Whether listed or unlisted, direct or indirect, we offer investment opportunities that span geographies and cover the risk/return spectrum.

We operate across all major property types, and across all major markets within Europe, the Americas and Asia Pacific, making investments through separate accounts, commingled funds, debt, strategic partnerships, co-investment programmes and real estate securities. In doing so, we create tailored strategies for our clients that take advantage of compelling market opportunities that are aligned with their return objectives.

In Asia Pacific, the firm has a deep, established platform with 170-plus employees located in six offices and managing over $8bn of AUM across all property types with on-the-ground acquisitions, asset and portfolio management, strategic partnerships, corporate, research and strategy, accounting and finance, tax, legal and compliance and client servicing professionals.

Sector forecasts

LaSalle remains cautiously optimistic on Asia Pacific economies and real estate fundamentals over the next two to three years. There is still room for further rental growth in selected markets/sectors. The probability of a significant yield expansion in most Asia Pacific markets over the near term remains low. However, short-term volatility could be underway if increasing geopolitical risks are combined with pockets of supply/demand imbalance. We could see pockets of weaknesses or re-pricing, as interest rates are expected to eventually “normalise”. LaSalle’s base-case outlook does not comprise of a sharp and deep down cycle in the region, barring no major disruptions or black swan events. Going forward, the key emphasis is more on asset management and less on capital appreciation.

OFFICE: Healthy corporate earnings, multinational and local tech companies and co-working operators have boosted office demand and reduced vacancy rates in major Asia Pacific real estate markets over recent quarters. Whilst pricing and capital market demand remain strong, major regional office markets are currently at different stages of the occupier market cycle, which continues to offer a menu of investment opportunities across the risk-return spectrum. For core strategies, LaSalle continues to favour Sydney, Melbourne and Tokyo offices. Build-to-core or value-add-to-core strategies in large and mature office markets (such as Tokyo, Sydney, Melbourne, Hong Kong or Shanghai) with good amenities and transport links remain attractive to investors seeking for higher returns with flexible or long investment horizons.

INDUSTRIAL: Demand drivers for logistics remain comparatively positive in most parts of the region against rising supply, which requires close monitoring at the local level to manage vacancy risk. Technology in particular is driving and changing occupier demand – and ultimately investor demand – for logistics. Market yields for logistics remain much higher than those of office properties in the same markets. The attractive development yield spreads are also supportive of build-to-core strategies. In particular, LaSalle favours development strategies in China, South Korea and Japan, where spreads between yields on cost and stabilised market yields are attractive.

RETAIL: The threat of e-commerce on retail malls varies by market and retail segment within Asia Pacific. E-commerce is expected to further contribute to the ongoing bifurcation between dominant, better-located and better-configured retail centres versus inferior locations and outdated retail centres. However, in select Asia Pacific markets, physical retail centres are also benefiting from online retailers effectively leveraging their fast-growing distribution channels from online sales to brick-and-mortar stores. LaSalle continues to favour non-discretionary retail malls with a high tenant mix in grocery, pharmacy, food and beverage, and services located in strong residential catchment areas.

RESIDENTIAL: The changing lifestyle of young households is driving the regeneration of urban neighbourhoods in major cities of the region. LaSalle favours urban rental apartments with excellent access to workplaces and amenities in major Asia Pacific cities, particularly in Japan.

HOTEL: Across the region, the rise of intra-regional tourism and growth of middle-income households are expected to drive demand for hotels in the long term. The key strategic focus continues to be on location selection, managing supply risk, and exit timing. LaSalle remains positive on Japan and Australia, as these markets are expected to benefit the most over the next few years.

Investment principles & strategy

At LaSalle, clients come first and we use our fiduciary experience to deliver competitive performance. Our many long-standing clients trust LaSalle and often invest in multiple mandates around the globe. A global investment perspective, fostered by the insights of our global research team and the experience of our fund managers, is matched by our ability to successfully execute deals, manage real estate and maximise 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. It provides direction to the investment teams, whose knowledge and network of contacts ensure LaSalle access to both on-market and off-market opportunities.

Strategic corporate development

For over 35 years we have been focused on delivering superior real estate investment performance to our clients.

Our strong global platform, with over 700 people in 24 offices around the world, ensures we have the capacity to take on new business and launch new initiatives to capitalise on emerging opportunities.

Across our business, we selectively evaluate expansion into new real estate investment strategies and markets that complement our existing activities and meet the needs of current and prospective clients.

LaSalle has recently acquired the Real Estate Multi-Manager (REMM) business of Aviva Investors. 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.

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 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 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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