LaSalle sells lion’s share of assets in second Japan logistics fund
22 October 2013
Category: News, Asia, Japan
By Asia Asset Management
LaSalle Investment Management (LaSalle) has sold a portfolio of assets in its Japan Logistics Fund (JLF) II, as it solidifies strong returns for its investors from this 2007 vintage fund. The buyer was selected through a sealed envelope competitive bid and the properties, which account for approximately 60% of the fund’s assets, were sold to a consortium of domestic institutions led by major Japanese banking groups.
LaSalle began investing in Japan’s logistic property market in 2004, when it launched its first Japan logistics fund, one of the first and only vehicles at the time to offer attractive opportunistic investments for institutional investors in warehouse development. The JLF II closed in 2007 and invested in the key distribution nodes of Greater Tokyo and Greater Osaka. The sale of these assets has allowed LaSalle to improve returns for this 2007 vintage fund above the benchmarks, as the firm progresses towards round-tripping the fund. LaSalle also recently announced the close of Japan Logistics Fund III, which takes the form of a club-style fund and focuses on modern multi-tenanted logistics facilities in Greater Tokyo and Greater Osaka.
Yasuo Nakashima, CEO for LaSalle Investment Management, Japan, comments: “The assets were traded at a very strong cap rate reflecting a recent shift in the capital market, which favours warehouse assets in particular. We believe the cap rate for the best warehouse assets is now around 5%.”
Mark Gabbay, co-head and CIO for LaSalle Investment Management, Asia Pacific, says: “The success of our second logistics fund is a testament to LaSalle’s strong execution capability and dedication to maximising gains and returning capital to our investors. Our unique track record in selling and realising attractive profits is further proven with the US$750 million returns we delivered from our JLF and Asia Opportunity Fund Series in 2013.”
Mr. Nakashima adds: “We have invested in Japan for almost a decade and have built a reputation as one of the strongest logistics property investors and managers in the country. We continue to see strong demand for stable core assets in Japan, while supply is still falling behind, and aim to continue investing in this market through our third logistics fund.”
LaSalle was established in 2000 in Asia and currently manages US$5.5 billion in Asia Pacific property assets. Since 2002, it has completed more than US$16 billion of property transactions in the region.