Hermes Investment Management has broadened the investment criteria of its real estate debt fund, allowing for it to seek out opportunities across the entire of the UK.
Relaunching the Hermes Real Estate Senior Debt Fund, the manager also announced it had completed its first three investments, financing several retail assets.
Vincent Nobel, the firm’s head of real estate debt, said the relaunch would allow the fund to obtain the best value available to it in the market.
When it launched last year, the fund restricted itself to retail, industrial assets and offices in London and the South East of England and it was under this mandate that the three initial assets were acquired.
However, Hermes has widened the scope of the fund to cover the entirety of the UK, with no restrictions on the type of property to be offered financing.
The initial three assets acquired are a pedestrianised shopping precinct, a second retail asset and a shopping centre in the vicinity of a rail station that would be connected to the upcoming London Crossrail line, set to open in 2018.
“Our first three real estate debt deals have been completed at an attractive spread and demonstrate the strength of our offering as well as the specialist expertise of the Hermes team,” Nobel added.
The deals reflect a loan-to-value ratio of 60% to 65%, with loans over a period of three to six years.