LaSalle Raises USD 370 Million for Real Estate Brown-to-Green Decarbonization Fund

LaSalle Investment Management raised USD 370 million at first close for its LaSalle Property Planet Protection Fund, targeting commercial real estate properties requiring capital expenditure for energy efficiency improvements and carbon reduction. The fund aims to deliver double-digit value-add returns alongside energy use intensity reductions of more than 30%.

The LaSalle Property Planet Protection Fund will pursue a retrofit-led approach, including deep retrofits of vacant buildings and lighter upgrades carried out while tenants remain in place, with a smaller allocation to ground-up green developments. Investors in the first close include the Development Bank of Japan, the California State Teachers' Retirement System, a leading wealth management firm's clients, a large international pension plan, LaSalle, and JLL. The USD 370 million first close surpasses predecessor Fund I, which closed at USD 188 million.

LaSalle plans to partner with JLL to leverage capabilities across energy, sustainability, and property management to support the fund's decarbonization strategy. The fund's brown-to-green framework targets properties currently underperforming on energy and carbon metrics and transforms them into assets aligned with Paris Agreement goals for limiting warming to 1.5 degrees Celsius. Fund Manager Ryu Konishi cited significant market opportunity in the transition to a decarbonized global economy and strong investor appetite for real estate with credible decarbonization pathways.

The fund is targeting enhanced operating income and asset appreciation alongside measurable carbon reductions, framing decarbonization as a value creation lever rather than a compliance cost. Physical climate risks and energy regulations are driving repricing of inefficient real estate assets globally, creating investment opportunities in deep retrofit strategies. LaSalle's approach reflects a growing trend among institutional real estate investors to develop dedicated vehicles for transition-focused property investment as carbon pricing and efficiency mandates tighten across major markets.

Key figure — USD 370 million raised at first close, targeting more than 30% energy use intensity reductions