Virginia Retirement System and have launched a $575m joint venture to build US industrial properties.
The pension fund told IP Real Estate it was committing $200m in equity to the VA Industrial JV.
The partnership will develop industrial warehouses in select US markets. Virginia would not comment on which markets the venture would focus on.
LaSalle said it would focus on opportunities to develop and lease large, modern distribution buildings in major population centres with strong transportation infrastructure.
LaSalle recently announced it had been awarded a mandate from a large US public pension fund, an existing client.
Jason Kern, chief executive of Americas at LaSalle, said end-user demand for industrial real estate is βvery strongβ, driven by growing GDP and global trade, as well as the need for βmodern buildings part of an efficient supply chainβ.
According to the firmβs research and strategy team, the availability rate for industrial supply has dropped 2.2% since the end of 2012 and 4.2% since 2010. LaSalle is forecasting annual rental growth of 3%. Internet retailing and larger multinational retailersβ focus on improving supply-chain efficiencies are also improving demand.
Virginia has existing exposure to industrial real estate, with 15.6% of its private real estate portfolio invested in the sector at June this year.
Real assets are now valued at $6.5bn or 10.5% of the pension fundβs $65bn total investment portfolio.
