LaSalle buys Japan logistics portfolio for ¥55bn

The Chicago-based real estate investment management has purchased a trio of logistics properties near Tokyo for a separate account capitalized by domestic investors.

LaSalle Investment Management, the Chicago-based real estate investment management firm, has acquired a portfolio of three logistics properties in Hagashi-Ogishima, Kawasaki City, near Tokyo, in one of the biggest Japanese logistics deals of the year.

LaSalle, which is owned by global property services firm Jones Lang LaSalle, purchased the warehouses for ¥55 billion (€401 million; $538 million). The purchase was made for a separate account for Japanese domestic investors. According to a report by Nikkei, the seller was Fortress Investment Group.

LaSalle announced the deal but declined to confirm the purchase price, nor details of the account committed. Nevertheless, PERE understands the account to be open-ended in nature and currently containing logistics assets with a gross asset value of $1.4 billion.

These latest three assets acquired comprise about 4.17 million square feet and are 95.1 percent leased.

LaSalle is well-known in Asia for generating strong returns from its logistics investment fund series in Japan which raised its first capital in 2004 and has made large exits in the past to groups including Global Logistic Properties and China Investment Corporation.

The first vehicle in the Japan Logistics fund series was raised in 2004 and the second in 2007. Last year, the firm raised $431 million for the third in the series, Japan Logistics Fund III, in just nine months. That capital was raised from three institutions including Dutch pension manager Algemene Pensioen Group (APG)