LCN Capital Partners raises over USD1.35bn for North American and European sale-leaseback funds
LCN Capital Partners (LCN), a private real estate investment firm and a specialist in the primary corporate sale-leaseback and build-to-suit markets, has raised over USD1.35 billion in equity commitments for its third pair of sale-leaseback funds.
Its US Dollar denominated, LCN North American Fund III LP, and Euro denominated, Luxembourg-domiciled LCN European Fund III SLP (the Funds), exceeded targets of USD500 million and EUR500 million, closing at hard caps of USD635 million and EUR600 million, respectively.
The Funds continue LCN’s hybrid strategy of originating and structuring primary market sale-leaseback and build-to-suit investments directly with corporate owner-occupants across all industry sectors and commercial property types in North America and Europe. Importantly, the credit-based leases negotiated, coupled with the security of corporate real estate ownership, create an investment that produces inflation-protected quarterly distributions. Moreover, the attractive risk-return asset is insulated from the mark-to-market volatility that public market participation and other direct real estate ownership often experience.
The Funds received capital commitments from global institutions, including pension funds, insurance companies, and foundations, as well as multi-family offices and high net worth individuals located across three continents and nine countries. The Funds also received “re-up” capital commitments from 100% of LCN Funds II institutional partners.
“Our third pair of distinct sale-leaseback funds are LCN’s largest raised to-date, having closed at their hard caps despite the disruption of Covid-19,” says Edward LaPuma, Co-Founder and Managing Partner of LCN. “In order to properly invest the capital entrusted to us by our partners, we have continued to develop our existing team, expanded our origination reach by adding offices around the globe, and are currently recruiting for various new positions. We believe that we are well positioned to identify and capitalise on the security, attractive risk-return, and fixed income-like attributes that our hybrid investment provides. We are humbled by the strong support of our original investing partners and welcome our new investing partners to Funds III, which are already significantly invested across North America and Europe.”
“With an Investment Committee of the two founders, each directly engaged on LCN’s transactions, LCN can provide the certainty and speed of closing, handle deal complexity, and preserve confidentiality for our corporate tenant-clients. These abilities have led some of the world’s best known corporate names to partner with LCN for their sale-leaseback and build-to-suit transactions, some for multiple transactions,” says Bryan York Colwell, Co-Founder and Managing Partner of LCN. “Since inception 10 years ago, LCN has distinguished itself as a reliable, long-term capital partner for our global tenant-clients who are seeking alternate liquidity sources to effectively manage their businesses.”
LCN North American Fund II LP, and LCN European Fund II SLP closed in 2017 with approximately USD750 million in capital commitments, and LCN North American Fund LP, and LCN European Fund FCP-SIF closed in 2014 with approximately USD450 million in capital commitments.