The Abu Dhabi Investment Authority (ADIA) has committed additional capital to Cheyne Capital’s European real estate credit fund, increasing the total investment to the capital solutions strategy to £650m (€760m).
ADIA, through a subsidiary, has backed the ninth vintage of the Cheyne Real Estate Credit Holdings (CRECH), a strategy mainly focused on senior lending against European real estate and, in addition, provides solutions across the capital structure, including subordinated debt, hybrid credit and commercial mortgage-backed securities.
CRECH’s recent deals include the structuring of a £780m loan alongside JP Morgan to Quintain for the refinancing of Wembley Park, London.
Other recent deals include a £318m loan to Goldman Sachs-backed Riverstone for two later living developments in London, £229m to Stanhope for the transformation and extension of the iconic 76 Southbank in London into an exemplar low carbon office, €250m to Bain Capital and Borio Mangiarotti to deliver 600 new homes in Milan and over €200m to the Beaumier hotel group with lifestyle hotels across France, Switzerland and Spain.
These deals formed part of a total lending volume of over £5bn in 2022 and 2023, Cheyne Capital said.
The alternative investment manager said the capital solutions strategy is part of its recently announced capital raise alongside a strategy focusing on senior loans only.
Ravi Stickney, managing partner and CIO of Cheyne Real Estate, said: “The capital solutions strategy aims to help the European real estate industry transition away from increasingly obsolete assets supported by low interest rates and towards productive, sustainable assets for the long term.
”With an enormous pipeline of future investments requiring funding, we look forward to continuing to address this need as we open the strategy up to other investors in 2024.”
Mohamed Al Qubaisi, executive director of the real estate department at ADIA, said: “We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship.
”The capital solutions strategy aims to meet the increasing demand for various forms of real estate credit by drawing on Cheyne’s expertise in the European real estate lending market. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital.”
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