|JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997|
The Company continues to explore additional international markets for its
Investment Management group clients. The Company intends to leverage its
organizational strength through selective acquisitions and the use of the
Company's international offices to take advantage of the accelerating interest
in international investment, to expand investment activity to new countries and
to strengthen its position as a leading intermediary for international real
estate capital flows.
The trend among investors is to favor advisors that co-invest in newly formed
investment vehicles in order to better align the interests of the investor and
the advisor. The Company believes that co-investment will become increasingly
important in order for the Company to retain and expand its competitive
position. The Company also believes that its co-investment strategy will
greatly strengthen its ability to raise capital for new investment funds over
which the Company exercises discretionary investment authority. After the
Offering, the Company intends to accelerate its co-investment activities. By
increasing assets under management, the Company will gain the opportunity to
provide additional services related to the acquisition, financing, property
management, leasing and disposition of such assets. Co-investment will also
provide a vehicle for the Company to participate in investment opportunities
resulting from recovering real estate markets. As of March 31, 1997, the
Company had a net total investment of $15.8 million in 33 separate property or
fund co-investments. The acquisition cost of the properties acquired through
these co-investments exceeds $1.0 billion. Existing co-investments consist
primarily of office and hotel properties purchased within the last three years.
Investment Management group operations are conducted with teams of
professionals dedicated to achieving client objectives. The portfolio managers
serve as the relationship coordinators for the Company's clients and are
responsible for drawing on all of the resources of the Investment Management
group (including research, investment services and specialty products) and the
rest of the Company's global resources. All investment decisions for private
market investments must be approved by the Company's five-member investment
committee. The investment committee approval process is utilized for both the
Company's discretionary investment funds and for all of its separate account
The Company is generally compensated for investment management services for
private equity and debt investments based on initial capital invested, with
additional fees tied to investment performance above benchmark levels. The term
of the Company's advisory agreements varies by the form of investment vehicle
involved and the type of service provided. The Company's investment funds have
various lifespans, typically ranging between five and ten years, with extension
provisions based on a vote of investors. Separate account advisory agreements
generally have three year terms with "at will" termination provisions.
Public Equity and Debt Investments. The Company offers its clients the
ability to invest in either separate account or fund investment vehicles
focused on public real estate equity and debt securities. The Company
principally invests its clients' capital in domestic REIT equities and CMBS.
LaSalle Partners is also active in private placement investments in publicly
traded real estate companies and selected investments in private real estate
companies seeking capital to ultimately gain access to the public markets.
The Company conducts its securities investment business through ABKB/LaSalle
Securities, which was formed by the Company in 1994 in connection with the
acquisition of ABKB's real estate advisory business. As of the end of 1994,
ABKB/LaSalle Securities served 21 clients and had approximately $630 million of
assets under management. As of March 31, 1997, ABKB/LaSalle Securities served
35 securities investment clients with $2.5 billion of assets under management.
The Company is typically compensated by its securities investment clients on
the basis of the market value of assets under management with increasing use of
incentive fees tied to performance of investments above benchmark levels.
On April 22, 1997, the Predecessor Partnerships acquired Galbreath pursuant
to a Contribution and Exchange Agreement, of the same date, among the Employee
Partnerships, the Predecessor Partnerships, Galbreath, the former stockholders
of Galbreath and certain related entities (the "Contribution and Exchange
© Copyright Jones Lang LaSalle, IP, Inc.