LaSalle Raises $370 Million for New Real Estate Decarbonisation Fund

LaSalle Investment Management, the global investment management business of JLL, announces that it has raised the first $370 million of capital for its new global decarbonization fund, the LaSalle Property Planet Protection Fund.

LaSalle intends to accelerate the delivery of a decarbonised solution for commercial real estate worldwide, while providing institutional capital allocators with an investment product that seeks to deliver accretive, risk-adjusted returns. The Fund will target properties in need of capital expenditures with the aim of improving energy use intensity, delivering measurable carbon reductions, and creating long-term value through enhanced operating income and asset appreciation.

According to LaSalle, the new fund will adopt a retrofit-led “brown-to-green” approach, including deep retrofits of vacant buildings as well as lighter upgrades carried out while tenants remain in place. A smaller portion of the portfolio may involve ground-up “build-to-green” developments. The company said that Lp3F will target double-digit value-add returns and EUI reductions of more than 30%.

Ryunosuke Konishi, Fund Manager of Lp3F at LaSalle, said, “Securing these initial foundational capital commitments to Lp3F is a validation of the significant market opportunity presented by the transition to a more decarbonised global economy. It also speaks to the strength of investor appetite for real estate assets whose decarbonization pathways align them with the Paris Agreement targets to limit global warming to 1.5°C and their faith in the LaSalle platform to manage transition and physical climate risks.”

Guy Grainger, Global Head of Sustainability Services and ESG at JLL, said, “We are thrilled with the strong commitments to Lp3F. We are proud to be partnering with LaSalle to leverage our joint expertise to deliver best-in-class decarbonization of real assets and drive investor value.”

Source