The Active Investor: Inside $90bn under management: Where LaSalle Allocates in Global Property?
In the latest episode of The Active Investor with SGH, Steve Hiscock speaks with Matt Sgrizzi, Chief Investment Officer, LaSalle Global Solutions, a division of LaSalle Investment Management, about where the best real estate opportunities lie in 2025 and beyond.
From high-conviction stock picking to the rebound in premium office assets, Matt shares timely, research-led insights based on the vast intel platform they built, feeding information from over 900 real estate professionals within the LaSalle Investment Management around the world who have over US$90bn in assets under management on behalf of clients. Find out how Matt and his team harness the knowledge and information from this global platform to uncover hidden value.
The past 12 months have seen interest rate concerns, inflation volatility, and geopolitical uncertainty weigh on global markets, including real estate securities. But listed real estate may be mispriced in the current environment.
What investors often overlook in the global real estate market? Where are the best opportunities in 2025?
Matt believes the sector has reached an inflection point, creating compelling opportunities for investors.
“The market has been obsessed with growth stocks and technology, but real estate has been left behind. That’s created an environment where some of the best real estate opportunities are trading at deep discounts. We see this as a major opportunity.”
Market Drivers: What’s Shaping Global Real Estate?
One of the most significant shifts has been the change in monetary policy. Central banks are moving away from aggressive rate hikes, with markets anticipating rate cuts later in 2025. Historically, falling interest rates have provided a major tailwind for REITs, which tend to be more interest-rate sensitive than broader equities.
Real estate is often misclassified as a bond proxy, but it’s much more than that.
“Real estate is a mix of both bonds and equities—it provides strong income and also offers long-term inflation protection. We believe many REITs have been unfairly punished due to rate fears, creating strong investment opportunities.”
Beyond interest rates, sectoral growth is playing an increasingly important role in real estate performance. Not all real estate is equal. Some sectors, such as data centres, healthcare, and cold storage, are seeing strong demand, while other areas, such as office and retail, are still finding their footing.
The growth of AI, cloud computing, and digital infrastructure has driven extraordinary demand for data centres, making them one of the most attractive sectors globally. Cold storage, a less well-known sector, has also gained traction. Meanwhile, healthcare REITs continue to benefit from aging populations and medical facility expansion.
On the other hand, some sectors that were previously under pressure are now showing signs of recovery. High-quality office space is experiencing rising demand and rental growth, particularly in major global cities where prime locations remain scarce.
Retail REITs, which faced headwinds from the shift to e-commerce, are seeing improved fundamentals as shopping patterns normalise.
Another key driver of REIT performance in 2025 is the increasing involvement of private equity in the sector. Large firms like Blackstone have been acquiring REIT assets at significant premiums, signalling confidence in the sector’s long-term fundamentals.
“Private capital is recognizing the long-term value in REITs, even if public markets aren’t yet. We think this will continue in 2025, supporting prices and creating opportunities.”
Spotlight on the SGH LaSalle Concentrated Global Fund
The SGH LaSalle Concentrated Global Fund follows a high-conviction investment approach, focusing on just 10-20 of the best Real Estate Investment Trust opportunities worldwide.
Rather than tracking an index, the fund takes a selective approach, investing only in high-quality, undervalued real estate assets. Over the past five years, this strategy has led to consistent outperformance of the broader global REIT market.
The SGH LaSalle Concentrated Global Property fund ranked first in terms of performance in the Australian Global Real Estate Morningstar Category over the last trailing 5 years to Jan 2025, based on data sourced from Morningstar.*
Where Matt Sgrizzi seas value at the moment?
Merlin Properties
One of the fund’s key holdings is a Spanish data centre developer benefiting from Europe’s growing need for digital infrastructure. Spain’s excess renewable energy capacity makes it an ideal location for data centres, providing clean power to major cloud operators. “Data centres are critical infrastructure—big tech firms need them, and demand is only growing. The ability to provide clean energy is a major differentiator,” Matt said.
Americold
Another high-conviction investment in the fund is Americold (NYSE: COLD), a REIT focused on cold storage facilities. Cold storage plays a crucial role in food and pharmaceutical supply chains, and demand continues to rise. “Every major grocery chain and food manufacturer relies on cold storage. This sector is quietly one of the most defensive and essential in real estate,” Matt explained.
Sun Communities
The fund also has exposure to manufactured homes, an affordable housing solution with strong long-term demand. One of its investments, Sun Communities (NYSE: SUI), recently sold 20% of its assets to Blackstone, validating the sector’s attractiveness. “Manufactured homes provide an affordable housing solution, and Sun Communities has a dominant position in this space,” Matt noted.
Derwent London
The office sector, long considered a struggling segment, has made its way back into the fund’s portfolio. LaSalle has reintroduced high-quality office space in prime locations, where demand is strong and rents are rising. “The office market is recovering—but only for the best properties in the best locations. Companies want high-quality spaces, and demand for premium office assets is stronger than most realize.”
The Outlook for REITs in 2025
Looking ahead, the global REIT market is expected to generate high single-digit returns, in the range of 8-10% annually. The SGH LaSalle Concentrated Global Fund, however, is targeting double-digit returns, thanks to its focus on undervalued, high-quality assets.
With valuations at historical discounts, strong sector tailwinds, and increasing M&A activity, the stage is set for a strong year ahead.
To hear more insights from Matt Sgrizzi, including a deep dive into sector opportunities and portfolio positioning, listen to the full episode here:
🎧 Listen to the full episode here:
More places to find our podcast:
Spotify – https://open.spotify.com/episode/12VUAIBX8MSvoRz4a1FaBZ?si=8962fb4eed964185
YouTube – https://youtu.be/s-U1RbWJsLI
Apple Podcasts –The Active Investor w/SGH Podcast – Apple Podcasts
Vimeo – https://vimeo.com/1068708613
© 2025 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its affiliates or content providers; (2) may not be copied, adapted or distributed; (3) is not warranted to be accurate, complete or timely and 4) has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), subsidiary of Morningstar. Neither Morningstar nor its content providers are responsible for any damages arising from the use and distribution of this information. Past performance is no guarantee of future results. Any general advice has been provided without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Morningstar’s publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Morningstar’s full research reports are the source of any Morningstar Ratings and are available from Morningstar or your adviser. To obtain advice tailored to your situation, contact a financial adviser. Some material is copyright and published under license from ASX Operations Pty Ltd ACN 004 523 782
Disclaimer: SG Hiscock & Company has prepared this article for general information purposes only. It does not contain investment recommendations nor provide investment advice. Neither SG Hiscock & Company nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested in the Funds. Past performance is not necessarily indicative of future performance. Professional investment advice can help you determine your tolerance to risk as well as your need to attain a particular return on your investment. We strongly encourage you to obtain detailed professional advice and to read the relevant Product Disclosure Statement and Target Market Determination, if appropriate, in full before making an investment decision.
SG Hiscock & Company publishes information on this platform that to the best of its knowledge is current at the time and is not liable for any direct or indirect losses attributable to omissions for the website, information being out of date, inaccurate, incomplete or deficient in any other way. Investors and their advisers should make their own enquiries before making investment decisions.
