LaSalle Investment Management has raised JPY 61bn (US$560m) in the initial closing of the LaSalle Japan Property fund, its first private open-ended core property fund in Asia.
The newly launched fund, which raised commitments from Japanese investors, aims to grow to US$1.8bn in three years and US$2.7bn in five years.
It will invest in the office, industrial, retail and multi-family sectors and focus on the Japanese cities of Tokyo, Osaka, Nagoya and Fukuoka.
The fund has acquired six assets for US$965m to make up its initial portfolio, based on the firm’s research and strategy framework of demographic, technology and urbanisation.
“We are excited to launch our first private open-ended core fund in Asia with a sizeable initial portfolio that, given its high asset quality, potential to generate strong recurring cash flows and desirable locations, directly aligns with the vehicle’s investment parameters,” said LaSalle Asia Pacific CEO Mark Gabbay.
The fund will draw on LaSalle’s open-ended core fund management experience in the US, Canada and Europe. The firm said the fund will target capital from international investors in the future.
“The creation of the LaSalle Japan Property Fund following the launch of the publicly traded J-REIT in 2016 – LaSalle Logiport REIT, enhances our products with core investment strategies in Japan,” noted LaSalle Japan CEO Keith Fujii.
“Strong market fundamentals across Japan, combined with transparent capital markets, depth of existing stock and high barriers-to-entry make the core real estate market a compelling strategy in the current environment,” added Ryota Morioka, LaSalle Japan Property fund manager.
LaSalle is a real estate investment manager, with US$67bn in assets under management.