The Fund invests in core properties in Japan and launched with JPY 61 billion (US$560 million) of initial equity commitments from Japanese investors along with loans extended by major Japanese financial institutions.

The initial portfolio includes six assets that have been selected based on LaSalle’s Research and Strategy framework of Demographic, Technology and Urbanization (“DTU”), for a purchase price of JPY 105 billion (US$965 million). The Fund will invest mainly in the Japanese cities of Tokyo, Osaka, Nagoya and Fukuoka in diversified assets across the office, industrial, retail and multi-family sectors. The Fund aims to grow to JPY 200 billion (US$1.8 billion) in three years and JPY 300 billion (US$2.7 billion) in five years.

The Fund will leverage the established platform of LaSalle, one of the world’s leading dedicated real estate firms, with broad experience managing diversified open-ended core funds, including similar offerings in the US, Canada and Europe. The Fund held its initial closing with commitments from Japanese investors and will target capital from international investors in the future.

Mark Gabbay, CEO, LaSalle Asia Pacific, said: “We are excited to launch our first private open-ended core fund in Asia with a sizeable initial portfolio that, given its high asset quality, potential to generate strong recurring cash flows and desirable locations, directly aligns with the vehicle’s investment parameters. Japan’s large, transparent real estate market is one we know very well, providing us with a sustainable competitive advantage as we invest into core assets. This advances some of our global and Asia Pacific regional strategies which is to target core assets with stable income generation and to offer our global investors access to a suite of products comprising a diverse range of real estate investments.”

Keith Fujii, CEO, LaSalle Japan, said: “The creation of the LaSalle Japan Property Fund following the launch of the publicly traded J-REIT in 2016- LaSalle Logiport REIT, enhances our products with core investment strategies in Japan. Along with our strength in opportunistic investments and asset development capabilities, we are strong believers in the long-term potential of the Japanese real estate market. We are an experienced team of professionals with a strong track-record of transactional execution, leasing, asset management and investment performance in the Japanese market and aim to build a high-quality portfolio of income-producing assets.”

Ryota Morioka, Fund Manager, LaSalle Japan Property Fund, said: “Strong market fundamentals across Japan, combined with transparent capital markets, depth of existing stock and high barriers-to-entry make the core real estate market a compelling strategy in the current environment. For LaSalle Japan Property Fund, we seek to leverage our existing relationships in the office, retail, industrial and multi-family sectors to create a high-quality, diversified portfolio of stabilized core assets.”

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