LaSalle IM LREDS III fund hits £233m with German loan

By Paul Norman - Friday, March 09, 2018 10:07

LaSalle Investment Management's £804m fund, LREDS III, has extended a five-year mezzanine facility of €25m to finance the acquisition of a portfolio of five assets in Germany for Ares Management.

The properties within the portfolio are a combination of office facilities and mixed-use spaces totalling just under 80,000 sq m located in Munich, Hannover and Dusseldorf.

LREDS III has deployed £233m. The fund has seen an increase in lending activity in recent months; recent selected deals include:

• £24m (€27m) mezzanine loan to finance the acquisition of a leading designer outlet centre in Scotland for Blackstone.

• £38m (€43m) five-year mezzanine loan to finance the acquisition of a UK retail portfolio for Capreon (formerly BMO).

• Acquisition and development whole loan (over €100m) secured against a prime Spanish student housing portfolio for GSA, Global Student Accommodation.

The most recently launched fund in LaSalle’s debt series has "seen strong demand from investors across all regions globally and has been the most successful fund raise in the series to date" it said.

LREDS III’s capital raise was oversubscribed and closed with aggregate commitments of £804m, exceeding its initial target. LREDS III has attracted 19 LPs from all over the world, comprising a diverse mix of investors from Europe, the Middle East, Asia and US.

The fund retained support from existing investors as well as attracting capital from investors that were new to the fund series.

Amy Klein Aznar, Head of Debt Investments and Special Situations at LaSalle Investment Management, said: “Given the excellent fundraising for LREDS III in 2017 and our strong position as an established lender in the European market, I am delighted to announce the fifth deal for the fund and the latest deal we have undertaken in Germany.

"This is consistent with our increasingly active continental European pipeline where we see a number of opportunities in Spain, France and the Netherlands in addition to Germany. We remain very active across the debt lending space with the ability to offer borrowers a broad range of debt solutions.”

LaSalle’s Debt Investments and Special Situations team, headed by Amy Aznar, has since 2010, the team has committed £2.1bn (€2.4bn) of investments in 54 individual transactions and secured against £9.6bn worth of real estate.

Get in Touch
+44 203 205 4600