LaSalle Investment Management has announced the first close for LaSalle Real Estate Debt Strategies IV (LREDS IV), the fourth fund in its real estate debt strategies series, with €435 million of aggregate commitments.
The commitments come from a broad range of pension funds and insurance companies across Europe and Asia, said LaSalle.
LREDS IV’s investment strategy focuses on mezzanine debt investments secured on real estate across Western Europe with a focus on Germany, Netherlands, UK, France and Spain offering compelling risk-adjusted returns with downside protection and high cash-on-cash yields.
In addition to mezzanine debt investments, LREDS IV offers whole loans, capex and development financing solutions. LaSalle’s European Debt & Special Situations platform has been investing across both the traditional asset classes such as office, logistics and residential, as well as alternative asset classes such as student housing and self-storage.
“I am thrilled with the strong first close commitments for LREDS IV. We continue to see strong demand for LREDS IV from investors who are attracted to the downside protection in light of the uncertainty due to the pandemic while still aiming to generate healthy current returns. We are already seeing some compelling opportunities given that the traditional banks remain relatively cautious while it also allows us to wait and take advantage of any dislocation opportunities that arises from the current uncertainty,” said Ali Imraan, Managing Director and Fund Manager for LREDS IV.
“I am delighted with the launch of the latest fund in our flagship LREDS series, where we have an exceptionally strong track record over the last decade. The team has already completed several debt investments this year, working with strong sponsors and senior banking partners across Europe, which has reinforced our position as a leading debt provider in the market,” added Amy Klein Aznar, Head of Debt & Special Situations for LaSalle Investment Management.