Sale-leaseback private real estate investment specialist LCN strikes $1.35bn close across third fund family


LCN Capital Partners has raised more than $1.35bn of commitments across a pair of new private real estate sale-leaseback funds.

Its US Dollar denominated LCN North American Fund III and euro denominated LCN European Fund III exceeded targets of $500m and €500m, closing at hard caps of $635m and €600m respectively.

LCN said the funds continue its hybrid strategy of originating and structuring primary market sale-leaseback and build-to-suit investments directly with corporate owner-occupants, across all industry sectors and commercial property types in North America and Europe.

It said the credit-based leases negotiated, coupled with the security of corporate real estate ownership, create an investment that produces inflation-protected quarterly distributions.

The funds also received re-up capital commitments from 100% of LCN Funds II institutional partners, it added.

LCN co-founder and managing partner Edward LaPuma said, “Our third pair of distinct sale-leaseback funds are LCN’s largest raised to-date, having closed at their hard caps despite the disruption of Covid-19.

“In order to properly invest the capital entrusted to us by our partners, we have continued to develop our existing team, expanded our origination reach by adding offices around the globe, and are currently recruiting for various new positions.

“We believe that we are well positioned to identify and capitalize on the security, attractive risk-return, and fixed income-like attributes that our hybrid investment provides.

“We are humbled by the strong support of our original investing partners and welcome our new investing partners to Funds III, which are already significantly invested across North America and Europe.”

The firm previously closed LCN North American Fund II and LCN European Fund II on about $750m in 2017, and LCN North American Fund LCN European Fund on about $450m in 2014.

LCN, which was founded by LaPuma and Bryan York Colwell in 2011, has more than $5bn of assets under management.

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