Standard Life enters property debt arena

Standard Life Investments has confirmed plans to enter the commercial real estate debt market with the launch of a £250 mln (€300 mln) mandate on behalf of Standard Life Assurance.

The company said it will build on over 50 years of experience in the commercial lending market in Canada to focus on senior secured loans in the UK.

The strategy complements Standard Life's existing capabilities in real estate and fixed income, it added.

'Interest from institutions in investing in real estate debt has increased significantly as they seek to diversify both their real estate and fixed income portfolios whilst maintaining and often enhancing yields and risk-adjusted returns,' said David Paine, head of real estate at Standard Life Investments.

Standard Life Investments recently announced the appointment of Neil Odom-Haslett as head of commercial real estate lending and unveiled plans to start making funding available for projects in Q4 2013.

Odom-Haslett, who has 31 years of experience in commercial real estate and corporate lending both in the UK and across other European markets, is responsible for all aspects of the Standard Life Investments commercial real estate lending platform.