LaSalle Investment Management has raised ¥61bn (€507m) for a newly launched open-ended core Japan property fund and has acquired an initial portfolio for JPY105bn.
The manager said the LaSalle Japan Property Fund – which will target capital from international investors in the future – received its initial equity commitments from Japanese investors along with loans extended by major Japanese financial institutions.
The fund invests mainly in the Japanese cities of Tokyo, Osaka, Nagoya and Fukuoka, and aims to grow to JPY200bn in three years and JPY300bn in five years.
The fund has bought a portfolio of six assets as part of its plan to invest in diversified assets across the office, industrial, retail and multi-family sectors.
Mark Gabbay, CEO, LaSalle Asia Pacific, said: “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.”
Gabbay said Japan’s large, transparent real estate market is one the company knows very well, providing LaSalle with a sustainable competitive advantage as it invests into core assets.
”This advances some of our global and Asia Pacific regional strategies which is to target core assets with stable income generation and to offer our global investors access to a suite of products comprising a diverse range of real estate investments.”
Keith Fujii, CEO, LaSalle Japan, said the creation of the LaSalle Japan Property Fund following the launch of the publicly traded J-REIT in 2016- LaSalle Logiport REIT, enhances the manager’s products with core investment strategies in Japan.
“Along with our strength in opportunistic investments and asset development capabilities, we are strong believers in the long-term potential of the Japanese real estate market.
“We are an experienced team of professionals with a strong track-record of transactional execution, leasing, asset management and investment performance in the Japanese market and aim to build a high-quality portfolio of income-producing assets.”
Ryota Morioka, fund manager, LaSalle Japan Property Fund, said: “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.
“For LaSalle Japan Property Fund, we seek to leverage our existing relationships in the office, retail, industrial and multi-family sectors to create a high-quality, diversified portfolio of stabilised core assets.”