Investment Management has raised 拢120m (鈧�165m) for its first UK private-rented sector (PRS) property fund.
The investment manager said it is aiming to invest more than 拢500m in the residential market for clients through the fund and other investment vehicles.
LaSalle is targeting both income-producing and new-build assets.
Andrew Stanford, UK residential fund manager, said the firm expects 鈥渃ontinued strong demand鈥� for PRS in the UK.
鈥淕rowing demographic pressure and a shortage of supply is driving housing requirements and we expect significant growth,鈥� Stanford said. 鈥淩eturns in UK PRS compare favourably with core commercial real estate.鈥�
The investment manager鈥檚 head of UK, Alan Tripp, said the firm has a 鈥渓ong-term ambition鈥� of having 10-15% of its UK assets under management in the build-to-rent sector.
Speaking at a in London organised by LaSalle, Stanford said the company has a 鈥渧isible pipeline of build-to-rent schemes鈥�.
The company, which this year invested 拢60m in a 292-unit build-to-rent scheme in Aberdeen, has hired Savills as property manager for its UK portfolio.
While few deals have transacted, Stanford said there was now more evidence of engagement by institutional investors as other real estate sectors became over-priced and impenetrable.
Stanford 鈥� who, before joining LaSalle was head of the UK government鈥檚 now disbanded PRS taskforce, added: 鈥淵es, we鈥檇 like to have seen more schemes coming out of the ground, and there was frustration with the planning process.
鈥淭he industry is supportive of the sector, but the biggest challenge now is winning the hearts and minds of council officials and the electorate.鈥�
