LaSalle Investment Management has raised £264m (€305m) for its third UK residential finance fund.

LaSalle Residential Finance III will focus on assets being developed or redeveloped for use as student housing, residential accommodation, hotels or healthcare-related property.

The vehicle is providing whole loans for larger and/or more highly leveraged developments at loan-to-cost ratios of up to 80%, with loans ranging from £15m to £100m.

The fund is the third in a series of vehicles managed by LaSalle, which have now raised £704m collectively.

LaSalle said Dutch pension fund manager APG is the largest investor in the series of funds.

Simon Marrison, European chief executive at LaSalle, said: “We have long been believers in real estate lending; in a low-interest rate environment, this is one of our most secure income yielding strategies.

“In the UK, the partial retreat of traditional lenders from development finance and higher LTV loans will continue to generate opportunities for non-traditional real estate lenders.”

In a trading update, LaSalle also said its Real Estate Debt Strategies III has now secured aggregate £334m of commitments and is aiming for a £600m raise to match its predecessor.

The fund’s primary focus is the UK, but it also invests across Western Europe and the Nordics.

The vehicle has extended a £38m, five-year mezzanine facility for the acquisition of a £191m UK portfolio by clients of BMO Real Estate Partners.

LaSalle said it has now raised nearly £600m across its debt strategies platform.