LaSalle Investment Management has announced the final close of its LaSalle Real Estate Debt Strategies III fund with £804m in commitments from a global investor base.
LREDS III’s capital raise was oversubscribed and exceeded its initial £750m target, LaSalle said in a statement.
The fund attracted 17 limited partnerships, 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 £260m secured earlier in the year, brings the capital raised for LaSalle’s debt investment platform to around £1.1bn in 2017.
Amy Klein Aznar, head of debt investments and special situations at LaSalle Investment Management, said: “We have raised more than £1bn this year for our debt strategies, with LRF III also securing additional capital of £260m 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.”
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.
Recent deal completed by the fund include:
■ Acquisition and development loan secured against a prime Spanish student housing portfolio for Global Student Accommodation.
■ £27m mezzanine loan secured against a dominant shopping centre in the UK for a major real estate private equity firm.
■ £24m mezzanine loan to finance the acquisition of a leading designer outlet centre in Scotland for Blackstone.
■ £38m, five-year mezzanine loan to finance the acquisition of a UK retail portfolio for BMO.
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