Global real estate investor QuadReal Property is expanding its commercial real estate debt business in Europe, with a plan to commit more than £2.5bn (€2.9bn) over the next three to five years.
In January 2023, QuadReal took its first step into the UK real estate credit sector by acquiring a stake in Précis Capital.
QuadReal, which manages a £7.5bn (€6.4bn) North American debt business, is now expanding its commercial real estate debt platform into the UK and Ireland with plans for future growth across Europe.
With this latest move, the real estate arm of British Columbia Investment Management Corporation is expected to have direct control over all decision-making.
QuadReal said, by the end of 2029, it expects to shift 10% to 20% of its total debt portfolio exposure to the UK and Europe.
The platform will focus on direct lending in the multifamily, student housing, industrial and self storage sectors with a focus on construction, transitional and stabilised loans, the company added.
Jonathan Dubois-Philips, president, international real estate at QuadReal Property, said: “Platform expansion in the UK and Europe is a natural next step for QuadReal’s debt strategy and will build off the successes of our team in North America.
“Expanding our lending capabilities in the UK and European markets provides us with the opportunity to further diversify our portfolio and gain exposure to the attractive risk-adjusted returns these markets have to offer.”
Prashant Raj, managing director, debt investments at QuadReal Property, said: “In alignment with QuadReal’s high conviction investment strategy and global experience, the expanded platform will focus on key sectors including multifamily, student housing, data centres, industrial and self storage.
“The initial commitment strategy is centred on the UK and Ireland, and will expand more broadly in Europe, with a focus on construction, transitional and stabilised loans, filling a current gap in the lending market.”
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