Mark Gabbay, CEO Asia Pacific of LaSalle Investment Management

CHICAGO—Locally-based LaSalle Investment Management reports it has completed the first close of its LaSalle China Logistics Venture, which has received initial capital commitments of $681 million.

The LCLV fund has recently acquired two development sites located in prime Shanghai satellite markets of Kunshan and Jiaxing. It has also acquired three stabilized logistics assets in Wujiang, Tianjin and Huizhou. No financial terms of those transactions were released.

LaSalle's first dedicated China logistics vehicle has seen strong demand from investors, attracting a diverse mix of investors from Europe, the Middle East, and Asia, the company states. The fund retained support from existing LaSalle investors as well as attracting capital from investors which are new to LaSalle.

Mark Gabbay, CEO Asia Pacific of LaSalle Investment Management, said, "With LCLV, we are responding to strong investor appetite for quality logistics assets. The quick completion of our first close is a testament to our strong track record and to the attractive returns available in the logistics sector in China."

Claire Tang, head of Greater China at LaSalle Investment Management, adds, "Growth in domestic consumption, and e-commerce in particular, will continue to boost demand for modern logistics properties. With the closing of our new fund, we will draw upon our regional resources and local expertise in the sector to pursue compelling investment opportunities and expand our investment footprint."

LCLV will invest across tier I and tier II cities located in China's key logistics regions, including the Yangtze River Delta (Greater Shanghai), Bohai Bay (Greater Beijing) and Greater Bay (South China). The fund seeks to develop and build a diversified portfolio of modern logistics facilities in markets with strong fundamentals, capturing attractive development margins.

LCLV also seeks to acquire and reposition underperforming logistics assets. The fund will also look to invest in cold chain logistics, benefiting from the rising demand from the fresh food sector in China.

LaSalle has completed more than $1.5 billion of transactions in the China logistics sector since 2008. LaSalle currently manages more than $4 billion of logistics investments in Asia, across key markets including China, Japan and Korea.

Instant Insights /

LaSalle Investment Management Closes First Deal for $681M China Logistics Fund

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