LaSalle arranges £58 million mezzanine loan for the acquisition of 59 UK urban logistics assets

LONDON (May 07, 2018) — LaSalle is pleased to announce that its £804 million fund, LREDS III, has arranged a £58 million, five-year mezzanine facility to finance the acquisition of 59 UK urban logistics 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.

The Fund has continued to be active in recent months, with recent deals including:

  • £22 million (€25 million) five-year mezzanine facility to finance the acquisition of a portfolio of five assets in Germany for Ares Management;
  • £20 million mezzanine loan for the refinancing of Nobu Hotel in Shoreditch, London, for Willow Corp Sarl, and;
  • £22 million mezzanine loan for the refinancing of a portfolio of forty UK hotels owned by Lone Star.

 

The LaSalle debt series also includes the £260 million 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.

Gadi Jay, Principal at Blackstone Real Estate Partners, said “We appreciate the relationship with LaSalle and look forward to working with Amy, Ali and the team on more opportunities in the future.”

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. 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.”

LaSalle’s Debt Investments and Special Situations team, headed by Amy Aznar, has an established 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 £2.1 billion ($2.9 billion) of investments in 55 individual transactions and secured against £10 billion worth of real estate.

About LaSalle Investment Management 

LaSalle Investment Management, Inc. (together with its global investment advisory affiliates, “LaSalle”) is one of the world’s leading real estate investment managers. LaSalle on a global basis manages approximately $59.5 billion as of Q2 2018 of private and public equity and private debt investments. LaSalle’s diverse client base includes public and private pension funds, insurance companies, governments, corporations, endowments and private individuals from across the globe. LaSalle sponsors a complete range of investment vehicles including separate accounts, open- and closed-end funds, public securities and entity-level investments. LaSalle Investment Management, Inc. is a wholly-owned, operationally independent subsidiary of Jones Lang LaSalle Incorporated (NYSE: JLL), one of the world’s largest real estate companies. For more information please visit www.lasalle.com

This information is based on the market analysis and expectations of LaSalle and should not be relied upon by the reader as research or investment advice regarding LaSalle funds or any issuer or security in particular. The information presented herein is for illustrative and educational purposes and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy in any jurisdiction where prohibited by law or where contrary to local law or regulation. Any such offer to invest, if made, will only be made by means of a private placement memorandum. Past performance is not indicative of future results.

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