LaSalle Investment Management has formed a joint venture with Swiss-based Quantum Global Real Estate to initially buy up to $1 billion of predominantly core-like assets around the world.
Jeff Jacobson, global chief executive officer at LaSalle, said the arrangement with the investment partner and asset manager gave the firm “access to capital” that could be quickly deployed in large real estate assets – something he said LaSalle thought to be of strategic importance in the existing “real estate investment environment”.
The venture is targeting predominantly quality long-term investments in excess of $100 million located in major mature real estate markets around the world. The initial focus is expected to be on Australia, France, Germany, the UK and the US. The venture will seek to make investments on its own and also as part of club arrangements with like-minded institutional investors, the firm said.
Though the firm did not reveal the amount of equity involved in the JV, it said with leverage it initially would be able to acquire $1 billion of assets.
Its partner, Quantum Global, owns finance, asset and private wealth management companies, as well as those in real estate development and investment consulting, with more than $5 billion of assets under management. Subsidiaries Quantum Global Real Estate and Quantum Global Investment Management are focused on investment and asset management for central banks and sovereign wealth funds, whereas Quantum Global Private Wealth provides asset management services for high-net-worth individuals.
Quantum owner, Jean-Claude Bastos de Morais, said in a statement: “We considered a number of prospective partners for this venture and LaSalle clearly demonstrated both the skills and commitment that we were looking for. This joint venture represents the optimal approach for us to commence investing in global real estate on behalf of our clients.”
LaSalle said a “multi-disciplinary team” was being led by industry veterans Bastos de Morais and Jacobson, working with senior members of the Quantum Global team and Simon Marrison, head and chief investment officer of LaSalle’s European private equity business, who will lead LaSalle’s initiative in the venture.
Jacobson and LaSalle are the focus of this month’s PERE Blueprint interview. In the interview, Jacobson explains how the firm has been making senior hires to serve clients better.
Recently, it announced the appointment of Jon Zehner from Area Property Partners to head up capital raising, new product development, merchant banking and large-scale, cross-border strategic investments with partners. “Global investors are requiring an ever-increasing level of sophistication, customised solutions and ideas from their managers, including co-investment, club and joint venture deals,” says Jacobson.
Another example is Chris Brett, who was hired from the London office of parent company Jones Lang LaSalle. Brett was brought on board last year as the new head of European strategic partnerships to help marry up the needs of investors that LaSalle knows want more direct control over investments.