LaSalle Investment Management’s third European real estate debt fund has exceeded its capital raising target, receiving £804m (€901m) at close.
The real estate investment manager said the LaSalle Real Estate Debt Strategies III (LREDS III) capital raise was oversubscribed and exceeded its initial £750m target. LREDS III has been the most successful fundraise in the series to date, it said.
The fund attracted 17 new and existing investors from Europe, the Middle East, Asia and US.
The LREDS III closing, combined with the LaSalle Residential Finance third tranche of £260m secured earlier in the year, brings the capital raised for LaSalle’s debt investment platform to approximately £1.1bn in 2017.
The fund’s primary focus is the UK, but will also invest across Western Europe.
Amy Klein Aznar, head of debt investments and special situations at LaSalle Investment Management, said the funds raised will enable the company to provide a wide range of large-scale financing solutions, including mezzanine, whole loans for stabilised, value-add and development assets.
She said: “We have already completed several debt investments this year, working with strong sponsors and senior banking partners across Europe, which has reinforced our position as a leading debt provider in the market.”
The fund’s recent deals include a loan secured against a prime Spanish student housing portfolio for Global Student Accommodation and a £27m mezzanine loan secured against a dominant shopping centre in the UK for a real estate private equity firm.
The fund has also completed a £24m mezzanine loan to finance the acquisition of a designer outlet centre in Scotland for Blackstone and a £38m, five-year mezzanine loan to finance the acquisition of a UK retail portfolio for BMO.