Fund manager Europa Capital has announced it has raised £100 mln (€110 mln) for its latest UK debt vehicle.
The vehicle, structured as a club deal, will follow the same investment strategy as the earlier Europa Mezzanine Fund, but will provide both whole loans and mezzanine financing up to 85% loan to value secured against UK commercial real estate with a focus on the regional markets.
The company said it intends to grow its debt platform in the near future and plans to bring to market various UK debt products in response to strong investor demand. The asset manager launched its Europa Mezzanine Fund in December 2016.
'Over the last four years we have provided around £200 mln of loans secured against over 6 million sq ft of property,' said Michael Birch, Chief Executive of the firm’s UK debt subsidiary.
He added: 'During this period, the UK regional debt market has undergone significant changes due to increased regulation imposed after the global financial crisis and further tightening post-Brexit. As a result, there are now a limited number of senior lenders who are prepared to finance transactions with more complex portfolios, with multiple properties and tenants, located across the UK.'
