US-based real estate investor LaSalle has raised around $681 million for first closing of its China-focused logistics fund, according to the media.
The fund, launched by LaSalle, is called LaSalle China Logistics Ventures LP.
The Chicago-headquartered firm launched the China warehouse and development fund in 2019 and secured $359 million in its initial commitment, according to a filing with the US Securities and Exchange Commission.
Reportedly, LaSalle is planning to raise around $1 billion for its LaSalle China Logistics Ventures LP.
Mark Gabbay, chief executive officer for Asia-Pacific at LaSalle said in a statement, “With LaSalle China Logistics Ventures, 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.”
LaSalle has invested around $4 billion in logistics in Asia. It sees the potential in China’s warehouse real estate sector which is driven by the increased spending by mainland consumers, and in particular, the revolution in online shopping.
The fund will also be used to develop new properties and acquire existing assets across China including the Yangtze River Delta, Bohai Bay and Greater Bay areas.
The fund has recently acquired two development sites, as well as three stabilised logistics assets.
The fundraising activity comes after LaSalle commenced construction on five new logistics developments in Shanghai Qingpu, Suzhou, Jiaxing, Chongqing and Xi’an in June last year. The projects were scheduled for completion in early 2020, delivering 359,000 square metr of leasable gross floor area.