LaSalle Investment Management Inc. is setting up its largest real estate fund in Canada, which it will seed with an asset portfolio of roughly C$750 million within the next three to six years, Bloomberg Markets reported.
The new fund will be LaSalle's first Canadian open-ended fund and is likely to run into the billions. It will target investments in offices and storage facilities, according to the news outlet.
"The immediate visceral reaction is there's a great point of entry because the Canadian dollar is low," and volatility is lower, but the market has the same potential for long-term returns as other markets in the U.S., U.K. and Australia, LaSalle Canada CEO John McKinlay said in an interview with Bloomberg.
Manulife Financial Corp.-backed Conundrum Capital Corp. is also expected to follow suit with a new fund focused on Toronto apartment buildings, slated to launch in the first quarter of 2018 with a fundraising target of up to C$500 million, according to the report.