LaSalle Investment Management, the global investment management business of real estate-focused professional services firm JLL, announced that it has raised $370 million for the LaSalle Property Planet Protection Fund (Lp3F), its new fund aimed at accelerating the delivery of decarbonization solutions across commercial real estate portfolios globally.
The company said that the fund will focus on properties requiring capital expenditures, targeting improvements in energy use intensity (EUI) and delivering measurable carbon reductions, while also 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%.
Ryu 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 decarbonized 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.”
The new funding attracted commitments from investors including the Development Bank of Japan, the California State Teachers’ Retirement System, clients of a leading wealth management firm, a large international pension plan, as well as LaSalle, and JLL.
LaSalle said that it intends to partner with JLL to leverage its capabilities across energy, sustainability, and property management, alongside a global network of relationships, in order to support the delivery of Lp3F’s strategy.
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.”
