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LaSalle lends to Blackstone for UK logistics splash

By Paul Norman - Tuesday, May 08, 2018 9:00

LaSalle Investment Management's £804m fund, LREDS III, has arranged a £58m, five-year mezzanine facility to finance Blackstone's acquisition of 59 UK urban logistics and industrial assets.

Since February Blackstone has bought two major UK logistics portfolios in combination with M7 Real Estate and LaSalle Investment Management has provided a combined mezzanine package for both.

In March funds managed by Blackstone and M7 Real Estate bought a logistics portfolio from Helical for £150m (€168.3m). The Magnus Portfolio of 20 logistics is made up of 2.27m sqft nationwide, comprising 17 single-let and three multi-let assets.

In February Blackstone and M7 bought 4.5 million sq ft of light industrial space across 40 properties located mostly in the North West & the Midlands along the M6 corridor from InfraRed for circa £320m.

LREDS III is the latest fund in LaSalle’s debt series and invests across Western Europe, with a focus on the UK. Its strategy focuses 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.

The Fund has continued to be active in recent months, with recent deals including:

• £22m (€25m) five-year mezzanine facility to finance the acquisition of a portfolio of five assets in Germany for Ares Management;

• £20m mezzanine loan for the refinancing of Nobu Hotel in Shoreditch, London, for Willow Corp Sarl, and;

• £22m mezzanine loan for the refinancing of a portfolio of forty UK hotels owned by Lone Star.

The LaSalle debt series also includes the £260m third tranche of the LaSalle Residential Finance fund (LRF III) which is active in residential, student housing, hotel, and healthcare development lending, throughout Western Europe with a UK focus.

Amy Klein Aznar, Head of Debt Investments & Special Situations at LaSalle Investment Management, said: “We are delighted to be able to support Blackstone again, this time in the establishment of their urban logistics strategy, having previously undertaken five financings for the build-up of Blackstone’s Logicor platform. This is a sector where we see a strong outlook and fundamentals. We underwrote a large portfolio of assets on a tight timescale, with a best in class sponsor, and this investment continues the strong momentum in the deployment of LREDS III. We continue to be active across Europe and the UK in the debt lending space, with the team able to offer sponsors a broad range of debt solutions following our successful fundraisings in 2017.”

LaSalle’s Debt Investments and Special Situations team, headed by Amy Aznar, has an established track record of developing strategic relationships with best-in-class borrowers and senior lenders, and has significant experience across various sectors, geographies, deal sizes and capital structures. Since 2010, the team has committed £2.1bn ($2.9bn) of investments in 55 individual transactions and secured against £10bn worth of real estate.

pnorman@costar.co.uk

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