LaSalle Investment Closes $984M Euro Fund

LONDON-LaSalle Investment Management has executed the final closing of LaSalle Real Estate Debt Strategies II, a $984 million (£600M) European real estate debt fund focused on providing whole loan and mezzanine loans secured against real estate in the UK and Germany.

Offering single loans between $16 million (£10M) and $327 million (£200M), the fund can lend up to 80% LTV across all real estate asset classes, though with a focus on the office, retail, industrial and residential sectors. The fund will lend alongside traditional and alternative senior lenders or provide fully underwritten whole loans which it may partially syndicate to senior parties.

Amy Aznar, head of LaSalle's Debt and Special Situations business said: “We are delighted to attract such a diverse mix of investors to the fund and are very optimistic about the opportunities we are seeing in Europe. With over £1 billion of investible capital, we will continue to find attractive ways to invest capital across our targeted debt strategies.”

Michael Zerda, European Director of LaSalle's Debt and Special Situations business said: “With over a quarter of the fund allocated and a substantial deal pipeline from a continuously growing sponsor base, we are pleased with the pace of growth the current market provides. Our goal is to continue to be a constructive and flexible partner for our borrowers, while also delivering strong risk-adjusted returns for our global investor base."

Simon Marrison, LaSalle's European CEO added: “The capital raise achieved by the fund is testament to the strong track record and deal sourcing capabilities that LaSalle's Debt and Special Situations team has built up since we established it in 2010”.

The fund is a successor fund to the “LaSalle UK Special Situations Fund I” and LaSalle's UK Junior Loan Program, each of which are fully invested. The Fund received backing from more than ten institutional investors across North America, Europe, and Asia.

Launched in 2010, LaSalle's European debt platform is managed by Amy Aznar and comprises 13 dedicated investment professionals whom are supported by LaSalle's European real estate investment platform. Providing tailor-made solutions covering a wide range of situations, LaSalle's Debt and Special Situations team arranges whole loan and mezzanine finance, development finance, capital expenditure funding, loan acquisition funding and preferred equity investments. Since its establishment, LaSalle's Debt and Special Situations team has advised its clients in respect of 22 investments secured against over $4.9 billion (£3.0B) of real estate.