LaSalle holds EUR435m first close of fourth fund in flagship European debt series
LaSalle Investment Management (LaSalle), a global real estate investment manager, has held the first close of the LaSalle Real Estate Debt Strategies IV (LREDS IV), the fourth fund in its flagship LaSalle Real Estate Debt Strategies series (LREDS), with €435 million of aggregate commitments.
LaSalle says the fund is on target for achieving a capital raise of EUR1 billion.
The commitments, originating from both existing and new clients to the LREDS series, come from a broad range of pension funds and insurance companies across Europe and Asia.
LREDS IV’s investment strategy focuses on mezzanine debt investments secured on real estate across Western Europe with a focus on Germany, the Netherlands, UK, France and Spain offering compelling risk-adjusted returns with downside protection and high cash-on-cash yields.
In addition to mezzanine debt investments, LREDS IV offers whole loans, capex and development financing solutions. LaSalle’s European Debt & Special Situations platform has been investing across both traditional asset classes such as office, logistics and residential, as well as alternative asset classes such as student housing and self-storage.
The Debt Investments & Special Situations team has a strong track record of developing strategic relationships with best-in-class borrowers and has significant experience across various sectors, geographies, deal sizes and capital structures. Since 2010, the platform has committed EUR3.4 billion to investments across 78 individual transactions.
Ali Imraan, Managing Director and Fund Manager for LREDS IV, says: “I am thrilled with the strong first close commitments for LREDS IV. We continue to see strong demand for LREDS IV from investors who are attracted to the downside protection in light of the uncertainty due to the pandemic while still aiming to generate healthy current returns. We are already seeing some compelling opportunities given that the traditional banks remain relatively cautious while it also allows us to wait and take advantage of any dislocation opportunities that arise from the current uncertainty”.
Amy Klein Aznar, Head of Debt & Special Situations for LaSalle Investment Management, adds: “I am delighted with the launch of the latest fund in our flagship LREDS series, where we have an exceptionally strong track record over the last decade. The team has 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.”
The launch of LREDS IV is also complementary to other funds within LaSalle’s European Debt & Special Situations platform, which offers wide-ranging financing solutions. This includes the EUR900 million LaSalle Whole Loan Strategies offering whole loans across Western Europe, the EUR1.5 billion LaSalle Residential Finance series offering residential, student housing, hotel and healthcare development lending and the GBP225 million Special Situations Venture which invests alongside sponsors via, inter alia, preferred equity, joint-venture equity and higher-leverage mezzanine.