LaSalle Investment Management executed a recapitalization of a 997-unit multifamily portfolio in Shanghai’s Yangpu District, China, by issuing preferred equity interests to a new fund vehicle managed by China Life Capital. The transaction generated liquidity for LaSalle while allowing it to retain majority ownership and continue managing the assets through its COZI multifamily operating platform. The portfolio consists of two stabilized assets totaling 37,726 square meters (406,079 square feet) with an average occupancy of 95%, originally acquired as office assets and repositioned into multifamily units under a value-creation strategy. The recapitalization injects new domestic capital into an existing investment, enabling LaSalle to return its original capital while participating in the portfolio’s long-term growth through a preferred-equity structure. The deal required complex structuring and collaboration with local stakeholders, leveraging LaSalle’s deep relationships with domestic capital partners in China. Steve Hyung Kim, incoming head of Asia-Pacific for LaSalle, highlighted the transaction as a testament to the firm’s ability to manufacture liquidity in the current environment through disciplined structuring and strong local partnerships.