Cornerstone Real Estate Advisers has picked debt specialist Laxfield Capital to originate and manage loans on Cornerstone’s behalf in the UK, the companies announced today. The appointment is in line with Cornerstone’s strategy of extending into Europe its US commercial real estate debt platform, which originated more than $4 bn (EUR 3.2 bn) in commercial mortgages during 2011.
Cornerstone Real Estate Advisers has picked debt specialist Laxfield Capital to originate and manage loans on Cornerstone’s behalf in the UK, the companies announced today. The appointment is in line with Cornerstone’s strategy of extending into Europe its US commercial real estate debt platform, which originated more than $4 bn (EUR 3.2 bn) in commercial mortgages during 2011.
Laxfield will assist Cornerstone in sourcing, structuring and managing property-secured senior loans, with an initial target lot size of between £25 mln (EUR 31 mln) and £75 mln. Cornerstone will offer a fixed rate product with maturities ranging from seven years to as many as 20 years.
'We believe our fixed-rate programme, which offers longer terms than are typical in the United Kingdom, will be received well,' said Charles Weeks, CEO of Cornerstone Europe. 'We have a seasoned Cornerstone team on the ground in the UK, that knows the local markets and key participants well; an advantage that will be enhanced by our relationship with Laxfield, as well as by leveraging the extensive real estate lending expertise we already have in the US.'
Cornerstone, which has assets under management totalling $34.7 bn, invests on behalf of more than 145 clients around the world.
'This is a very attractive institutional market and a significant opportunity for Cornerstone to geographically diversify its lending portfolio,' said Cornerstone's chief investment officer Robert Little. 'We’re looking forward to expanding rapidly both in terms of products and markets.'
