LaSalle Investment Management, the investment arm of JLL, has raised $370 million for its LaSalle Property Planet Protection Fund (Lp3F). The fund focuses on reducing carbon emissions across commercial real estate portfolios.
The fund targets properties that require capital upgrades. It aims to reduce energy use intensity (EUI) and cut carbon emissions. At the same time, it seeks to improve operating income and increase asset value over time.
Moreover, LaSalle plans to prioritise buildings where upgrades can deliver measurable environmental impact. This approach also aligns financial returns with sustainability goals.
Lp3F will follow a “brown-to-green” strategy. This includes deep retrofits of vacant buildings. In addition, the fund will carry out lighter upgrades in occupied properties.
A smaller share of investments may go toward new “build-to-green” developments. Overall, the fund targets double-digit value-add returns. It also aims to reduce EUI by more than 30%.
The fund has attracted capital from a diverse group of investors. These include the Development Bank of Japan and the California State Teachers’ Retirement System. Other contributors include clients of a global wealth manager, a large international pension fund, along with LaSalle and JLL.
Ryu Konishi, Fund Manager of Lp3F, 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.”
LaSalle will work closely with JLL to implement the fund’s strategy. This partnership will draw on JLL’s expertise in energy, sustainability, and property management. It will also use its global network to support execution.
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.”
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