GLOBAL - Partners Group has provided mezzanine finance for an office building in London's Canary Wharf and senior housing developments in Canada.
The Switzerland-based private real estate specialist has been focusing for some time on recapitalisations and mezzanine finance investments, which it has identified as one of the best opportunities for its institutional clients in the current climate.
The two deals, which include providing mezzanine debt for 17 Columbus Courtyard in London, show that the investment manager is putting the strategy into practice.
Partners Group is acting as lender alongside real estate debt fund manager Duet Group, while insurance company MetLife is providing the senior debt.
The 200,000 square foot building is owned by property company Fourteen Ninety Two and is let in its entirety to Credit Suisse First Boston.
Partners Group said the deal included an "enhanced by a profit participation clause", which will provide its clients the potential to benefit from "the expected upside and rental growth prospects of the Canary Wharf office market".
Nori Gerardo Lietz, chief strategist for private real estate at Partners Group, said: "We are delighted to have been able to secure this attractive investment opportunity for our clients.
"It is another example of Partners Group's ability to provide financing for high-quality properties in excellent locations in a capital-constrained market."
The investment manager is also providing a mezzanine investment of C$12m (€8.95m) for the construction of two senior housing facilities in the Canadian provinces Alberta and Saskatchewan.
Partners Group is aiming to generate returns from both interest on the mezzanine investment and an equity stake in the development, while also benefiting from downside protection through having a registered security against the collateral.
Partners Group has identified recapitalisations and mezzanine debt as one of three best investment opportunities in the current market environment, alongside buying secondary stakes in existing real estate funds and new investments in emerging markets.
Last month, Partners Group completed a secondary investment in a portfolio of mixed-use real estate assets in India.
