LaSalle Investment Management’s fourth European real estate debt fund has so far raised €435m and is on track to reach its €1bn fundraising target, the manager said.

LaSalle said the capital raised by the LaSalle Real Estate Debt Strategies IV (LREDS IV) fund at the first close was received from both existing and new clients, made up of pension funds and insurance companies across Europe and Asia.

The previous fund, LREDS III, exceeded its initial £750m target to raise over £800m of commitments in 2017.

LREDS IV targets mezzanine debt investments secured on real estate across western Europe with a focus on Germany, the Netherlands, UK, France and Spain. The fund also offers whole loans, capex and development financing solutions.

Ali Imraan, managing director and fund manager for LREDS IV, said: “We continue to see strong demand for LREDS IV from investors who are attracted to the downside protection in light of the uncertainty due to the pandemic while still aiming to generate healthy current returns.

“We are already seeing some compelling opportunities given that the traditional banks remain relatively cautious while it also allows us to wait and take advantage of any dislocation opportunities that arise from the current uncertainty.”

Amy Klein Aznar, head of debt and special situations for LaSalle Investment Management, said: “I am delighted with the launch of the latest fund in our flagship LREDS series, where we have an exceptionally strong track record over the last decade.

”The team has 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.”

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