LaSalle to seek $300m in Korea

The manager has raised almost £600m for its two latest European real estate debt vehicles.

LaSalle Investment Management will aim to raise a total of $200-$300 million from Korean investors for its real estate debt funds in Europe.

The latest European real estate debt fund that the manager is currently raising in Korea is the LaSalle Real Estate Debt Strategies (LREDS) III. The first round of fundraising activities in Korea will start in June to July followed by one or two more rounds, according to LaSalle.

The manager has seen growing demand for real estate debt strategies from Korean investors which are looking for stable income and better risk-adjusted returns, according to JB Park, head of the Client Capital Group, Korea at LaSalle.

LREDS III had corralled £334 million by last month and is expected to surpass the size of its $600 million predecessor. The fund lends against quality assets with “best in class” sponsors to generate risk-adjusted returns across mezzanine and whole loan investment opportunities. It targets primarily the UK market, but can also invest across Western Europe and the Nordics.

On the other hand, the manager is also raising for its LaSalle Residential Finance Fund (LRF) III.

LRF III had raised £264 million ($336 million; €300 million) by the end of last month. The fund focuses its lending on assets in the UK which will be developed or redeveloped as student housing, residential accommodation, hotels or healthcare-related property. It provides whole loans of up to 80 percent loan-to-cost, ranging in size between £15 million and £100 million.

The two predecessors of the fund, LRF I and LRF II, have invested close to £500 million since 2013, including a £110 million whole loan to Telford Homes and Business Design Centre in Q3 2016 to fund the City North development, a mixed-use scheme anchored by 355 apartments in London’s Finsbury Park, according to a previous report by PDI’s sister publication REC.

Since 2010, LaSalle has committed £1.8 billion of investments in 47 individual transactions secured against £8.6 billion worth of real estate.