LaSalle Residential Finance I raises GBP238m
LaSalle Investment Management has held the final close of LaSalle Residential Finance I (LRF I).
The GBP238m vehicle aims to provide developers with senior ranking whole loan financing for residential projects in London and student housing development schemes in major university towns across the UK.
LRF I offers APG access to a niche targeted market opportunity and the expertise and knowledge of LaSalle’s established UK property and European debt platform.
Michael Zerda, manager of LRF I and European director of debt investments and special situations, says: “LaSalle Residential Finance I is the only vehicle of its size in the market today offering developers whole loan construction finance on student housing and residential development in the UK. With the traditional banking market still dealing with regulatory pressures and balance sheet pressures, this allows us to fill a clear gap in the financing market.
“We offer loans between GBP15m and GBP60m, typically up to circa 75 per cent loan to cost, and expect to announce our first deal shortly. We have had high levels of interest from a wide variety of developers looking for non-bank sources of capital and expect this trend to continue in the medium term. We aim to make between five to seven loans in the next six months and view this as the first tranche of a long term and larger scale strategy.”
Roland Mangelmans, senior portfolio manager of APG Asset Management, says: “The London residential development market and UK student housing market is characterized by an imbalance between supply and demand from a debt perspective. Simultaneously from an equity point of view APG perceives these markets as attractive, with sound fundamentals. This real estate debt strategy contributes to APG’s overall real estate debt portfolio and provides further diversification.”