LaSalle Investment Management’s third European real estate debt fund has refinanced a portfolio of hotels managed by the Shearings Leisure Group.

The real estate investment manager said the LaSalle Real Estate Debt Strategies III (LREDS III) has extended a five-year mezzanine facility of £22.2m (€25.2m) to refinance the portfolio of forty hotels.

The refinancing replaces a platform facility and will facilitate an extensive capital expenditure programme following the consolidation of the group’s ownership under funds managed by Lone Star, LaSalle said.

In November last year, LREDS III exceeded its capital raising target, receiving £804m at close. Its initial target was £750m.

LaSalle said today LREDS III is off to a strong start having already deployed £233m.

Amy Klein Aznar, the head of debt investments and special situations at LaSalle Investment Management, said: “Given the excellent fundraising for LREDS III in 2017 and our strong position as an established lender in the European market, I am delighted to announce the sixth deal for the fund.

“Following on from 2017, we continue to be very active across the debt lending space and have the appetite to lend further into the hotel space for the right sponsors and business plans.”