LaSalle Arranges $220M in Loans for Blackstone

The three mezzanine loans were used to refinance European portfolios of last-mile logistics and other industrial assets, comprising more than 250 properties.
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LaSalle Investment Management has arranged more than $220 million (€200 million) of mezzanine loans to refinance three portfolios of last-mile logistics and industrial assets for real estate funds advised by Blackstone. Eastdil acted as Blackstone’s debt advisor. 

The portfolios include 264 assets in key urban locations in Germany, the Netherlands, France and Denmark. As of press time, Commercial Property Executive had not received requested additional information from LaSalle.

Ali Imraan, LaSalle’s managing director for Debt Investments & Special Situations, noted in the announcement that the three loans follow two previous financings of the same strategy that LaSalle did for Blackstone in 2018 in the U.K., Germany and the Netherlands.

Powerhouse financing

The loans are part of the latest fund in the LaSalle Real Estate Debt Strategies program, LREDS III, which raised more than $1 billion (£800 million) of commitments in 2017. Through LREDS III, LaSalle’s Debt Investments and Special Situations team invests across Western Europe via mezzanine and whole loan investment opportunities.

Ali Imraan, Managing Director for Debt Investments & Special Situations, LaSalle Investment Management. Image courtesy of LaSalle Investment Management

Last month, LaSalle announced that LREDS III  had provided $121 million in financing for Manhattan Loft Gardens, a hotel-and-residential property in London’s Stratford neighborhood. LREDS III reportedly is ahead of its deployment schedule, having committed to more than $453 million (£360 million) of loans so far in 2019. This accelerates the fundraising for the next fund in the series, LREDS IV, which has a target capital raise of $1.1 billion (€1 billion) and is set to launch later this year, according to LaSalle.

In December 2018, LaSalle launched its $661 million (€600 million) LaSalle Whole Loan Strategies program, whose strategy is to originate and hold whole loans with loan-to-values ranging from 70 percent up to about 80 percent across various asset types and targets financings between $27.6 million (€25 million) and $110 million (€100 million) plus.

For its part, Blackstone last month closed Blackstone Real Estate Partners IX, which at $20.5 billion in total capital commitments is the largest real estate fund ever raised.