UBS Asset Management's European mortage fund launched in December 2015 has agreed four transactions in the UK, fully deploying its £241 mln (€272 mln) of equity commitments.
UBS Participating Real Estate Mortgage Fund (UBS-PREMF), is managed by UBS AM's real estate & private markets business.
The closed-end UK fund completed three new loans and extended one existing loan, representing a total of £48.7 mln of lending in the first six months of 2017. This means the fund has committed all the equity raised following its final close in December 2015.
The newly completed deals were a £22.2 mln term loan facility of three years for the acquisition of a commercial site on Lansdowne Road, Croydon; a £17 mln three-year facility for the acquisition of a residential site in Cheadle Hume, Greater Manchester; and a £7.7 mln, four-year loan for the refinancing of a residential and commercial portfolio predominantly in Edinburgh.
The four deal involved a £1.8 mln additional facility on an existing £10.7 mln development loan for a mixed-use office and hotel scheme in Brighton, Sussex.
UBS-PREMF has concluded 17 loans in total, including those already repaid, secured against 74 real estate assets across England and Scotland with an aggregate underlying property value of £361 mln. The average loan size has been GBP 14 million.
'The ongoing demand from a range of commercial borrowers for bespoke and client-focused structured investment and development financing continues to offer market opportunity for alternative lenders like ourselves, who are able to offer a unique and nimble proposition,' said Anthony Shayle, head of real estate debt EMEA (excluding Switzerland) and senior portfolio manager for UBS-PREMF.
'With over 100% of the fund’s equity now committed, we are now focused on recycling repaid amounts into new opportunities. Our established track record of delivering attractive returns on behalf of our investors, together with market conditions likely to remain supportive for borrowers, offers a number of options to us in pursuing further success once this Fund’s investment programme has been completed in the coming months.'
Pictured: Anthony Shayle
