Specialist real estate investment manager PMM Group has announced plans to launch a commercial real estate finance platform into the UK and Ireland called PMM Real Estate Finance (PMM REF).
With an initial £100 mln capital allocation, it has plans to deploy in excess of £500 mln of capital over the next three years.
'PMM sees a great opportunity to offer liquidity to an underserviced part of the UK and Irish markets,' commented Gareth Williams, partner, PMM REF. 'We aim to underwrite real estate fundamentals rather than simply cash flows, which means loans can be structured to suit borrowers’ distinct business plans.'
PMM REF will provide senior and mezzanine finance for the acquisition and refinancing of commercial property, up to 80% LTV, for ticket sizes ranging from £5 mln to £25 mln. The company said it already had a pipeline in place and is actively involved in a number of transactions across the UK and Ireland.
PMM REF’s investment strategy will be focused on areas with strong borrower demand, where banks have retrenched and debt liquidity is weakest.
'The opportunity for non-bank lenders in both markets is growing and access to debt remains challenging, especially for smaller debt amounts at higher leverage. Rather than just price, certainty of execution and high levels of customer service are becoming an increasingly important consideration,' added Williams.
Williams will co-lead the newly formed division alongside partner Domhnall Gaffney.
Prior to joining PMM, Williams and Gaffney were part of the management team at LNR Partners Europe, responsible for origination, structuring and execution of commercial real estate loans. They have previously held senior roles in the real estate finance divisions of large UK and European financial institutions.
'We are delighted that Gareth and Domhnall have joined PMM to launch the new lending platform. They bring a wealth of industry experience in originating, structuring and arranging commercial real estate finance loans,' said Mike Weston, Partner of PMM. 'Their expertise will be invaluable to PMM as we continue to diversify our fund base into asset classes that complement our existing portfolio of investments.'
Pictured: Williams, Weston & Gaffney
