LaSalle Investment Management's £804 mln fund, LREDS III, has arranged a £58 mln (€66 mln), five-year mezzanine facility to finance the acquisition of 59 UK urban logistics and industrial assets by Blackstone.
LREDS III is the latest fund in LaSalle’s debt series and invests across Western Europe, with a focus on the UK. Its strategy focuses on lending against quality assets with best-in-class sponsors; the combination of which offers compelling risk-adjusted returns across mezzanine and whole loan investment opportunities.
Amy Klein Aznar, head of debt investments & special situations at LaSalle Investment Management, said: 'We are delighted to be able to support Blackstone again, this time in the establishment of their urban logistics strategy, having previously undertaken five financings for the build-up of Blackstone’s Logicor platform.'
She added: 'This is a sector where we see a strong outlook and fundamentals. We underwrote a large portfolio of assets on a tight timescale, with a best-in-class sponsor, and this investment continues the strong momentum in the deployment of LREDS III. We continue to be active across Europe and the UK in the debt lending space, with the team able to offer sponsors a broad range of debt solutions following our successful fundraisings in 2017.'
The fund has continued to be active in recent months, with recent deals including a £22 mln five-year mezzanine facility to finance the acquisition of a portfolio of five assets in Germany for Ares Management; a £20 mln mezzanine loan for the refinancing of Nobu Hotel in Shoreditch, London, for Willow Corp Sarl; and a £22 mln mezzanine loan for the refinancing of a portfolio of 40 UK hotels owned by Lone Star.
The LaSalle debt series also includes the £260 mln third tranche of the LaSalle Residential Finance fund (LRF III) which is active in residential, student housing, hotel, and healthcare development lending, throughout Western Europe with a UK focus.
