London-based investment banking and private equity group Evans Randall is joining forces with the National Bank of Abu Dhabi (NBAD) to provide mezzanine financing in European real estate. The partnership, which will have a target size of $500 mln, will focus on the UK and German markets, and will seek to capitalise on the growing gap in the capital structure of property investments between senior debt and common equity. The joint venture will aim to pay annual cash returns of between 8% and 12% to investors with projected IRRs of 15%-20%.
London-based investment banking and private equity group Evans Randall is joining forces with the National Bank of Abu Dhabi (NBAD) to provide mezzanine financing in European real estate. The partnership, which will have a target size of $500 mln, will focus on the UK and German markets, and will seek to capitalise on the growing gap in the capital structure of property investments between senior debt and common equity. The joint venture will aim to pay annual cash returns of between 8% and 12% to investors with projected IRRs of 15%-20%.
'With increased conservatism on the part of banks in the short to medium term and the longer term shift in regulatory capital aspects of such investments, ongoing opportunities are available for investors able to originate and provide such financing,' said Michael Evans, Chairman & Chief Executive of Evans Randall.
The joint venture provides NBAD with access to an attractive and fast-growing sector of the European real estate market, said Akram Mark Yassin, Senior General Manager of NBAD's Corporate & Investment Banking Division.
In the last four years Evans Randall has become a leading investor in landmark real estate assets in both the UK and Western Europe, having acquired a portfolio in excess of $8 bn.
