LaSalle Debt Investments to expand sustainable lending

LaSalle Investment Management yesterday announced that La Salle Debt Investments has expanded its senior-secured debt strategies to include a dedicated sustainable lending focus, following a €350 million green loan drive.

Richard Craddock, Managing Director, LaSalle’s senior-secured debt strategies.

“As the drive towards Net Zero Carbon accelerates, we continue to support our European borrowers to deliver high-quality, sustainable accommodation across sectors,” said Richard Craddock, managing director, leading La Salle’s senior-secured debt strategies. “By adding a dedicated green loan focus to our existing senior-secured strategies, LaSalle is able to provide a crucial source of capital to help reduce European real estate’s carbon footprint.”

La Salle expects demand for loans to finance green refurbishments and the construction of energy-efficient developments to increase, he said, as the need to decarbonise gathers further momentum.

La Salle Debt Investments, one of Europe’s largest alternative real estate lending platforms, in the last year has provided over €350 million of green loans across Europe.

The platform has increased its capacity to support borrowers in retrofitting existing assets to improve their energy performance and fund the construction of the next generation of energy-efficient buildings across the UK and Continental Europe.

Recent green loan activity includes a £148 million senior facility to support the construction of a PBSA scheme in Central London, a £115 million development facility to support a multi-asset regional UK PBSA portfolio, and a €40 million mezzanine facility to support the retrofit of a Berlin office asset.

LaSalle works with third party ESG advisors to create a green lending framework that aligns with the Loan Market Association’s green loan principles.

Last year LaSalle was recognised as “ESG firm of the year” in the PERE (Private Equity Real Estate) awards, acknowledging that sustainability is a critical pillar of the company’s long-term corporate strategy and investment philosophy.

LaSalle Debt Investments has over €1.5 billion lending capacity in Europe across its credit strategies, which include senior loans, whole loans, mezzanine, and development finance.