LaSalle Investment Management - Real Estate - Europe

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

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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, coinvestment 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 Europe, the firm has a deep, established platform with 270-plus employees located in eight offices and managing approximately €19bn of AUM across all property types, with on-the-ground acquisitions, asset management, research and strategy, tax, financing, product development and client servicing professionals. Moreover, in Europe, LaSalle’s Real Estate Debt Investment platform provides tailor-made lending solutions across the capital stack. To date, the platform has allocated/invested more than £2.5bn since 2010.

Sector forecasts

INDUSTRIAL: Logistics tenant demand has been growing over the past decade, with a structural component largely driven by the rise of e-commerce, and a cyclical component driven by the economic and industrial recovery in the region. Demographic shifts and a growing propensity to shop online are expected to result in a prolonged demand growth. In high density, urban locations this will likely be satisfied by logistics-led mixed-use development. Rental levels have significantly increased and even popped over the last couple of years in markets such as London and Munich. Although pricing is not an immediate concern, it could become one over the medium term if asset prices continue to outpace rents and supply finally ignites. We nevertheless continue to expect above-inflation rental growth in locations with limited land supply.

OFFICE: European office vacancy is at its lowest level since 2002 (6.0%), while vacancy rates in central submarkets of cities are even lower. To date, the supply response has remained modest and while the office development cycle is gradually accelerating, it is doing so off low levels by historical standards. Our continental European rental growth forecast has two phases: a strong positive phase over the next 18 to 24 months followed by a slowdown. Rental growth in the London office market is expected to be relatively muted over the next couple of years due to weaker net absorption in the context of Brexit uncertainty, but has upside potential in the event of a faster-than-expected and satisfactory Brexit resolution.

RESIDENTIAL: In the current ongoing low-yielding environment residential for lease is viewed as an attractive defensive asset class that is becoming institutional in a growing number of countries. Various structural trends including continued urbanisation, changing household structures and population growth are stimulating demand for to-own and even more so to-rent housing in Europe’s most successful cities. This will create opportunities for property types such as residential rental units, micro apartments and student housing notably in the UK, Germany, France and the Netherlands. Our expectation is that given the profound supply-demand imbalance, residential will exhibit robust risk-adjusted returns in the medium term.

RETAIL: The retail environment remains challenging as retailers continue to see their physical store operational profitability squeezed through fierce competition. Overall retail vacancy rates are rising, except for prime high street pitches and larger, dominant experiential shopping centres which have shown greater resilience. In the UK, retailers have been facing increased import costs due to a weaker pound since 2016, rising labour costs resulting from increases to the minimum wage, and long-term structural changes linked to evolving consumer spending habits. Overall, with the exception of the best shopping centres or high street pitches, rental growth is expected to be negative to marginally positive 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. We remain solely dedicated to real estate and seek to develop and deliver investment solutions which help our clients meet their investment objectives.

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. In some instances, we may enter new business lines via acquisitions of established platforms, and in others we will enter new business lines organically.

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. In addition, LaSalle has also acquired full management of Encore , our flagship European core plus open-end fund, which has been jointly managed by both parties for 11 years.

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 is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

News from LaSalle Investment Management - Real Estate - Europe

News from IPE Real Assets

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White Papers / Research from LaSalle Investment Management - Real Estate - Europe

  • The case for UK Private Rented Sector download

    Investing in UK residential property through its Privately Rented Sector (PRS) is a compelling opportunity today. The sector has a place in a balanced diversified investment portfolio, given its low historical correlation with other asset classes and the potential to deliver attractive risk-adjusted returns.

Analysis from IPE Real Assets

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Head Office
One Curzon Street
London
W1J 5HD
United Kingdom
Company website:
http://www.lasalle.com
Parent Company:
JLL
Year Founded:
1980

What’s new

  • The case for UK Private Rented Sector

    White papersSun, 31 May 2015

    Investing in UK residential property through its Privately Rented Sector (PRS) is a compelling opportunity today. The sector has a place in a balanced diversified investment portfolio, given its low historical correlation with other asset classes and the potential to deliver attractive risk-adjusted returns.

  • Lisa Kaufman

    Asset Manager NewsMon, 26 Nov 2018

    Global CEO, Securities