LaSalle Investment Closes $681M China Logistics Fund

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LaSalle Investment Management has completed the first close of its LaSalle China Logistics Venture. The fund and its co-investment vehicle have received initial capital commitments of $681 million.

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The fund is LaSalle’s first dedicated China logistics vehicle and reportedly has attracted a diverse mix of investors from Europe, the Middle East and Asia, including both existing LaSalle investors and investors that are new to LaSalle.

LCLV will invest across Tier I and II cities in China’s key logistics regions, including the Yangtze River Delta (Greater Shanghai), Bohai Bay (Greater Beijing) and Greater Bay (South China). The fund’s goal is to develop and build a diversified portfolio of modern logistics facilities in markets with strong fundamentals and in so doing to capture attractive development margins. In addition, it will seek to acquire and reposition underperforming logistics assets and to invest in cold chain logistics, based on the rising demand from China’s fresh food sector.

The fund has recently acquired two development sites in the prime Shanghai satellite markets of Kunshan and Jiaxing and three stabilized logistics assets in Wujiang, Tianjin and Huizhou. LaSalle did not reply to Commercial Property Executive’s request for additional information.

Busy on multiple continents

LaSalle’s track record in China logistics dates back to 2008. Since then, the company has completed more than $1.5 billion of transactions. LaSalle currently manages more than $4 billion of logistics investments in Asia, across key markets including China, Japan and Korea.

Last October, LaSalle Investment Management acquired Logiport West Anseong, a more than 500,000-square-foot logistics facility in Anseong City, South Korea. The four-story building includes both dry storage and temperature-controlled space, plus a mezzanine level for office space.

Around on the other side of the globe, LaSalle Investment Management in February closed on the purchase of a 645,000-square-foot Dutch logistics facility. The Bleiswijk Urban Logistics Center is less than 10 miles from the Port of Rotterdam, Europe’s busiest, and was purchased through LaSalle’s pan-European fund Encore+.