LCN raises $1.4bn for North America, Europe sale-leaseback funds

LCN Capital Partners to raise over $1.35bn (€1.12m) for its North American and European sale-leaseback funds.

The private real estate investment firm said global institutions have backed its LCN North American Fund III and LCN European Fund III fund to raised $635m and €600m respectively, exceeding each of the fund’s hard cap target.

North American Fund III had a $500m hardcap target and the LCN European Fund III fund had a €500m target.

The predecessor LCN North American Fund II and LCN European Fund II funds closed in 2017 with $750m in capital commitments.

LCN said the funds continue the manager’s hybrid strategy of originating and structuring primary market sale-leaseback and build-to-suit investments directly with corporate owner-occupants across all industry sectors and commercial property types in North America and Europe.

The funds’ backers include pension funds, insurance companies, and foundations, as well as multi-family offices and high net worth individuals located across three continents and nine countries, the manager said.

The funds also received capital commitments from 100% of LCN Funds II institutional partners, the manager said.

Edward LaPuma, co-founder and managing partner of LCN, said: “Our third pair of distinct sale-leaseback funds are LCN’s largest raised to-date, having closed at their hard caps despite the disruption of COVID-19.

“In order to properly invest the capital entrusted to us by our partners, we have continued to develop our existing team, expanded our origination reach by adding offices around the globe, and are currently recruiting for various new positions.”

LaPuma said LCP believes it is well-positioned to identify and capitalise on the security, attractive risk-return, and fixed income-like attributes that its hybrid investment provides.

“We are humbled by the strong support of our original investing partners and welcome our new investing partners to funds III, which are already significantly invested across North America and Europe.”

Bryan York Colwell, co-founder and managing partner of LCN, said since inception 10 years ago, LCN has distinguished itself as a reliable, long-term capital partner for its global tenant-clients who are seeking alternate liquidity sources to effectively manage their businesses.

To read the digital edition of the latest IPE Real Assets magazine click here.