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Real estate debt

Korean LPs commit over $94 mn to LaSalle’s $513 mn debt fund

Oct 10, 2020 (Gmt+09:00)

South Korean pension and savings funds, including the Yellow Umbrella Mutual Aid Fund and the Korea Scientists and Engineers Mutual-aid Association (SEMA), have committed over 80 million euros ($94 million) to LaSalle Investment Management’s latest European debt fund, which raised 435 million euros ($513 million) in its first close this week.

Yellow Umbrella Mutual, a $12 billion savings arm for Korea’s small business owners, and the SEMA have committed at least 80 million euros to the fund in aggregate, a source with knowledge of the matter told The Korean Investors on Oct. 6.

A few other Korean institutions joined the fund as limited partners, but the source declined to identify them, nor the amount of their investment.

On Oct. 5, LaSalle announced the first close of the fourth fund in its flagship European debt series, LaSalle Real Estate Debt Strategies IV (LREDS IV), at 435 million euros.

The commitments, originating from both existing and new investors in the LREDS series, come from a broad range of pension funds and insurance companies across Europe and Asia, LaSalle said.

The aggregate capital commitments by Korean investors to the fund represent around 20%. Initially, LaSalle expected Korean LPs to make up 30% of the 1 billion euros it targeted raising in the final close of the new fund.

“This strong first close puts the fund on target for achieving a capital raise of 1 billion euros,” the US investment firm said in a statement.

The latest fund focuses on mezzanine debt investments secured on real estate across Western Europe, with a focus on Germany, the Netherlands, UK, France and Spain. It will also provide whole loans and financing for facility investment and development projects.

“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 arising from the current uncertainty,” Ali Imraan, LaSalle Investment’s managing director and fund manager for LREDS IV, said in the statement.

Write to Jung-hwan Hwang at jung@hankyung.com



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