TIAA Global Asset Management's property division, TH Real Estate, has announced plans to expand its debt platform in Europe in 2017.
'We believe that debt is an attractive investment in the UK and Europe as it holds the potential to deliver predictable returns from contractual cash flows, insulated from market volatility,' commented Christian Janssen, head of debt, Europe, TH Real Estate. 'We have numerous deals in the pipeline for early 2017 and look forward to continuing to expand the UK platform and enter new European markets.'
TH Real Estate closed 62 commercial loans in the US and the UK with a total value of more than $4.4 bn (€4.1 bn) during 2016.
Deals in Europe included a £95 mln (€111 mln) loan for a London office portfolio and a £47 mln (€55 mln) senior loan secured on logistics assets in Greater London.
'We’ve had a strong finish to the year and expect healthy debt markets to continue into 2017,' noted Jack Gay (pictured), TH Real Estate’s global head of debt. 'Mortgages in the US and UK continue to offer good relative value versus other fixed income products. Looking ahead, we are targeting an increase in loan origination across the risk spectrum.'
TH Real Estate also held the final close of its inaugural UK Debt Fund in 2016, having raised over £250 mln (€293 mln) from a range of UK, European, Asian and US investors. The fund closed the year with a portfolio of 10 investments, exceeding targets.
