Patron Capital’s newly launched European real estate credit platform has closed £107m (€122.9m) in UK deals across two separate transactions.
The European real estate investment manager’s Patron Capital Credit SMA business has issued an £87m senior refurbishment facility secured against the 122,000sqft Juxon House City of London office asset, and a £20m senior loan to Signal Capital, secured against an income‑producing UK-wide residential portfolio.
The borrower of the facility for Juxon House is a special purpose vehicle owned by GR Life Style Company, a Hong Kong-listed global real estate investment company.
The three‑year senior Juxon House refurbishment facility refinances a former loan and fully funds a £26m capital expenditure programme to reposition the asset, including the refurbishment of approximately 35,000sqft of recently vacated top floor office space and attached private terrace.
Stephen Green, senior partner at Patron Capital, said: “These deals show we are delivering what we set out to when we launched Patron’s credit business. We are leveraging our 26-year track record in value-add and opportunistic investment in Europe to work with borrowers, taking a granular approach to underwriting development, refurbishment, value-add and operational strategies.”
Henry Randolph, partner, credit at Patron Capital, said: “These are two very different loans that illustrate the range of opportunities we are targeting through our credit platform across sectors, from value‑add situations where our equity and development expertise is a genuine differentiator, to time sensitive transactions where speed and agility really matter.
“We are actively looking at additional opportunities from ground-up development through to investment lending, with a particular focus on mid-market whole loan and mezzanine lending where we can build strong, long‑term borrower relationships.”
Patron Capital Credit SMA focuses on providing whole loans between £20m and £100m, as well as mezzanine lending under £25m. The strategy targets the UK and selected European markets, including Spain, Portugal, Germany, the Netherlands, Ireland and the Nordics. Capital will be allocated toward value-add, refurbishment and development projects.
The credit platform is part of Patron Capital’s partnership with its majority shareholder, Mitsubishi Estate Group, utilising institutional backing from the group’s investment arm, Mitsubishi Estate Global Partners. Funding for the platform’s facilities is partially structured through a loan-on-loan arrangement with MUFG Bank, the core banking unit of Mitsubishi UFJ Financial Group, while Patron preserves day-to-day operational control over loan structuring and borrower management.
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