By John Covaleski, Commercial Real Estate Direct Staff Writer

Jones Lang LaSalle has raised $1.5 billion of equity commitments for an investment fund that will target core properties in the United States.

Colin Dyer, JLL's president and chief executive, said that he expects the LaSalle Property Fund to "grow significantly over the coming years" because it is an open-end vehicle, which means it has no pre-determined closing date.

The fund raised its equity within a few months after JLL's LaSalle Investment Management unit began marketing it mainly to pension funds in the fourth quarter. Its investors include Kansas Public Employees Retirement System.

In a conference call with analysts, Dyer said the relatively quick time to raise the equity commitments indicates that pension funds' appetite for real estate is firm.

"They are being cautious on illiquid sectors and going for liquid sectors for preference, but nevertheless, our sense is that real estate is holding its allocation," he said.

He added that pension funds that have a steady in-flow of cash "have to continue to place investments. What you will see is that money finding its way back into the real estate sector," he said.

He also noted that property-investment markets worldwide are offering the clarity needed to facilitate deal flow "for the first time in many quarters." He added, "Cap rates should be firmer and prices more transparent as we progress through the first half."

Dyer also said he expects U.S. sales volume this year to increase by up to 50 percent from a year ago, in a reiteration of JLL's forecast last month. But he added that the sales rebound here will trail the recovery in foreign markets by six to nine months.

LaSalle Property Fund is the first U.S.-exclusive property investment fund launched by JLL since 2008, when it raised $728 million of equity for LaSalle Income & Growth Fund V, a closed-end fund with a value-add strategy. That fund's investment cycle is scheduled to end in 2011.

Its last open-end fund, Excelsior LaSalle Property Fund, was launched in 2004 and is now registered as a REIT. It is still seeking investments and is able to raise additional equity by selling shares.

Bank of America Capital Advisors manages Excelsior LaSalle and LaSalle Investment Management is its investment advisor, according to an SEC filing.

Comments? E-mail John Covaleski or call him at (215) 504-2860, Ext. 208.