LaSalle closes LREDS III fund with over £800 million in commitments from a global investor base
LaSalle is pleased to announce the final close of its LaSalle Real Estate Debt Strategies III (“LREDS III”) fund with aggregate commitments of £804 million.
The most recently launched fund in LaSalle’s debt series has seen strong demand from investors across all regions globally, and has been the most successful fund raise in the series to date. LREDS III’s capital raise was oversubscribed and exceeded its initial £750 million 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 United States. The fund retained support from existing investors as well as attracting capital from investors that were new to the fund series.
The LREDS III closing, combined with the LaSalle Residential Finance third tranche of £260 million secured earlier in the year, brings the capital raised for LaSalle’s debt investment platform to approximately £1.1 billion 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 has seen an increase in lending activity in recent months; 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 UK shopping dominant shopping centre for a major real estate private equity firm.
- £24 million mezzanine loan to finance the acquisition of a leading designer outlet in Scotland for Blackstone.
- £38 million, five-year mezzanine facility 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: “I am delighted with the fundraising success of LREDS III. We have raised over £1bn this year for our debt strategies, with LRF III also securing additional capital of £260 million 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.”
Simon Marrison, CEO of Europe for LaSalle Investment Management, added: “Amy and her team have concluded a strong year with the closing of LREDS III, one of LaSalle’s most successful ever fund raises globally. We have seen more opportunities come along as a result of banks remaining relatively cautious; as such the team has a good pipeline of transactions and has been notably busy in the last few months with a strong pick-up in activity, with deals in France, Spain and the UK.”
LaSalle’s Debt Investments and Special Situations team, headed by Amy Aznar, has a strong track record of developing strategic relationships with best-in-class borrowers and senior lenders, and has significant experience across various sectors, geographies, deal sizes and capital structures. Since 2010, the team has committed £2 billion ($2.6 billion) of investments in 51 individual transactions and secured against £9.3 billion worth of real estate.