LaSalle Investment Management is planning a €1 bn follow-on fund in its flagship Real Estate Debt Strategies (LREDS) programme after allocating almost 90% of LREDS III.
It emerged at EXPO REAL this week that LREDS IV will have a target capital raise of €1 bn compared to LREDS III’s €800 mln and that it will launch later this year.
The programme makes whole loans and mezzanine loans in the UK and Western Europe across asset classes and across currencies.
The fund has a high weighting to logistics. Its latest investment is over €200 mln of mezzanine loans for Blackstone’s Mileway, to refinance three portfolios of last mile logistics in Germany, the Netherlands, Denmark and France. Eastdil advised Blackstone.
LREDS III has also funded office, self-storage and one large residential and hotel asset - in Stratford, east London. Last month the fund provided a £110 mln senior loan to refinance Manhattan Loft’s recently completed 42-storey tower there.
The project includes a 146-bed hotel on the ground to seventh floors.
Speaking at EXPO Ali Imraan, managing director, debt investments, said: ‘Continental Europe is a bigger part of LREDS’ business now than it was, versus the UK. We are seeing more opportunities there.’
LaSalle has two other fund series. LaSalle Residential Finance provides debt for residential, student housing, hotel and healthcare development. The Whole Loan Strategies programme, launched in December 2018, makes whole and mezzanine loans of up to 80% loan to value. It recently provided circa €80 mln to Blackstone to finance the acquisition of Tarragona Tower in Barcelona.