LaSalle Investment Management has held the final close for its latest European real estate debt fund, having secured aggregate commitments of £804 mln (€906 mln).
LaSalle Real Estate Debt Strategies III (LREDS III) had seen strong demand from investors across all regions globally, and was the most successful fund raise in the series to date, LaSalle said.
LREDS III’s capital raise was oversubscribed and exceeded its initial £750 mln target. LREDS III has attracted 17 LPs from all over the world, comprising a diverse mix of investors from Europe, the Middle East, Asia and US. The fund retained support from existing investors as well as attracting capital from investors that were new to the fund series.
The fund's closing, combined with the LaSalle Residential Finance third tranche of £260 mln secured earlier in the year, brings the capital raised for LaSalle’s debt investment platform to £1.1 bn in 2017.
LREDS III invests across Western Europe, with a focus on the UK. Its strategy is to focus 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.
The fund's recent deals include:
- Acquisition and development loan secured against a prime Spanish student housing portfolio for GSA, Global Student Accommodation
- £27 million mezzanine loan secured against a dominant shopping centre in the UK for a major real estate private equity firm
- £24 million mezzanine loan to finance the acquisition of a leading designer outlet centre in Scotland for Blackstone
- £38 million, five-year mezzanine loan to finance the acquisition of a UK retail portfolio for BMO
Amy Klein Aznar, head of debt investments and special situations at LaSalle Investment Management, said: 'We have raised over £1 bn this year for our debt strategies, with LRF III also securing additional capital of £260 mln for residential, student housing, hotel, and healthcare development lending. This enables us to provide our borrowers with wide ranging and large-scale financing solutions ranging from mezzanine to whole loans for stabilised, value add and development assets.
'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.'
