Altarea and Tikehau Capital have committed an initial €200m to launch a European real estate credit strategy.
The platform is intended to grow in size to €1bn over time while “bridging an anticipated wide liquidity gap in the market”, the companies said, across property types including office, retail, industrial, residential, logistics and hospitality.
It will address a range of situations by providing flexible capital solutions to real estate sponsors and corporates, with a primary focus on asset-backed and traditional corporate financings, notably through junior mezzanine or whole loan debt instruments, the companies said.
The latest venture builds on previous joint ventures between Altarea and Tikehau Capital.
Antoine Flamarion, co-founder of Tikehau Capital, said: “We are excited to launch our real estate credit platform as we see a number of upcoming potential attractive opportunities throughout Europe.
“Tikehau Capital has a strong track record in real estate and private credit, and we believe that this platform will offer investors potential attractive returns while providing much-needed financing solutions for European property owners and developers – in particular, in an environment where interest rates are rising sharply and liquidity dries up.”
Alain Taravella, executive chairman and founder of Altarea, said: “We believe there is a strong momentum to initiate this strategy today. Real Estate companies and sponsors are still adjusting to the new environment with higher interest rates, more difficult refinancing ahead and progressive price discovery on asset values across all asset classes.
“Altarea brings a wealth of expertise in Real Estate from an equity perspective as an investor and a developer, providing deep insight into project risk assessment and the capacity to manage complex situations.”
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