Henderson launches two debt funds

Henderson Global Investors is poised to launch two real estate debt funds for the institutional market. Both funds aim to capitalise on the broad retraction of European bank lending and will have a common focus on premium real estate with strong sponsorship, John Feeney, Head of Real Estate Debt, said.

'Investor interest in real estate debt has continued to increase, and many investors are now familiar with the highly attractive risk-adjusted returns available. Following detailed research we have now developed two targeted strategies. With a focus on high quality property and well-capitalised, expert sponsorship, our aim is to deliver the premium fund products in this fast-evolving market.'

The Henderson High Income Real Estate Debt Fund will invest in both senior and defensive subordinated real estate secured debt. Investments will predominantly be newly originated and secured by high quality leased real estate in well established markets at leverage of up to 75% LTV. The fund will target a gross IRR of between 8% and 10% over an investment horizon of up to seven years, largely through income.

The Henderson Senior Secured Real Estate Debt Fund will invest in senior ranking and conservatively structured real estate loans at leverage of up to 60% LTV. The loans will again be newly originated and secured by premium property in the most well established locations. The fund will target a total gross return of between 5% and 6% per annum over an investment horizon of up to seven years.

Feeney will lead the execution of investment origination and underwriting drawing on the broad resources of the Secured Credit and Global Property teams. Colin Fleury, Head of Secured Credit, will provide Fund oversight and direction of team resources. Marcus Langlands Pearse, Director of Property, will co-ordinate and oversee the real estate debt due diligence process within Henderson’s £12.5 bn (EUR 15.4 bn) global property business.