LaSalle Investment Management, the Chicago-headquartered real estate investment manager, has increased the fundraising target for its latest Asia opportunity vehicle from $750 million to $1 billion.
The firm launched LaSalle Asia Opportunity V in August 2016 and has so far garnered investor support of $335 million, with pending commitments that would bring the total raised to $700 million.
LaSalle will use the capital to target real estate assets in need of repositioning, development or redevelopment, leasing and active asset management in: Japan, Australia, China, Singapore, Hong Kong and Korea.
The firm has a target net return of 18 percent for the vehicle and the performance of its four proceeding pan-Asia opportunistic funds averages a net 24 percent internal rate of return, according to documents filed by investor, the Arkansas Teacher Retirement System (ATRS).
ATRS documents also revealed that LaSalle is charging 1.5 percent management fees on committed capital during the investment period, and on invested capital thereafter. First close investors receive a 75 basis point discount during the investment period.
“We are pleased with the depth of institutional demand for our opportunistic fund product in the region, as it highlights the successful track record we’ve built in recent years in deploying capital and generating strong investment performance for our clients,” commented Mark Gabbay, chief executive of Asia Pacific at LaSalle. “We look forward to building additional momentum for this fund, and expect global investor demand to remain strong.”
LaSalle has invested more than $10 billion via the LaSalle Asia Opportunity Series in approximately 150 investments and currently has a platform of 161 people in the Asia Pacific region, with offices in Japan, Australia, China, Singapore, Hong Kong and Korea.