A growing number of investment managers is moving into the real estate debt market as they seek to benefit from attractive lending margins and fill the gap left by retreating banks. Following in the footsteps of the likes of AXA, Allianz, Metlife and M&G, Henderson Global Investors said it is weighing the creation of new debt products later this year following the appointment of John Feeney as head of real estate debt within its secured credit team. 'We are in discussions with potential investors about a fund or segregate mandates,' Andrew Creighton, director of property, told PropertyEU. ‘We may do both.’ He added that he hoped to have something up and running by the third quarter.
A growing number of investment managers is moving into the real estate debt market as they seek to benefit from attractive lending margins and fill the gap left by retreating banks. Following in the footsteps of the likes of AXA, Allianz, Metlife and M&G, Henderson Global Investors said it is weighing the creation of new debt products later this year following the appointment of John Feeney as head of real estate debt within its secured credit team. 'We are in discussions with potential investors about a fund or segregate mandates,' Andrew Creighton, director of property, told PropertyEU. ‘We may do both.’ He added that he hoped to have something up and running by the third quarter.
Cornerstone Real Estate Advisers is also joining the ranks of players building up a position in the European property lending market. The European adviser, which acquired Protego Real Estate Investors in January 2010, aims to have a new debt team in place within the next 12 to 24 months, the company's European head Charles Weeks said. The new platform will draw on the experience of Cornerstone’s US parent which is a subsidiary of insurer Mass Mutual, he added. 'One of our areas of focus is to bring the debt investment skills of Mass Mutual to Europe through the Cornerstone platform.' The focus will be on loans of around £20-40 mln (EUR 23.7 mln-EUR 47.4 mln) with a 'very core' exposure in the UK, in particular London and the southeast of the country, he added. ‘We will start to dip our toes in lending in the UK but in time we may expand our investment horizon to Europe.'
Pan-European real estate investment manager AEW Europe is plotting a number of new investment initiatives including debt strategies after raising a total of EUR 1.5 bn in fresh capital commitments. The Paris-based firm is currently in 'active discussions' on the first close of a senior debt product, Rob Wilkinson, chief investment officer said. Last year the company appointed Russell Jewell to head up its private equity funds division and create a platform for new debt products. US private equity giant Blackstone likewise continues to target distressed real estate and debt for its latest global fund, Blackstone Real Estate Partners VII and its European fund, BREP Europe III, which was raised in 2009 and which is believed to still have around EUR 2 bn of capital to invest.
The full article appears in the April edition of PropertyEU Magazine. Click on the link below to order your copy now
