Wainbridge courts private money for lending initiative

Boutique property investor-developer Wainbridge Capital is seeking 'a couple of hundred million' of equity commitments from high-net-worth individuals keen to access real estate via senior and mezzanine lending. ' In today's market, with the existing funding gap, lending can provide equity-type returns without the need to take the equity risk, according to Wainbridge principals Edouard Fernandez and Rob Rackind.

Wainbridge is looking at lending opportunities in the UK, across Europe and in the US. The types of projects include distressed existing assets, new developments and value added opportunities, with Wainbridge taking a senior or mezz debt position.

The Jersey-based company completed its first first high-yield US debt investment in November last year. In association with Glacier Global Partners, Wainbridge provided the bridge capital required for The Charles, a luxury residential condominium development in NewYork.

Fernandez said at the time: 'We see the "rescue capital" financing as an attractive market segment offering significant opportunities and expect that this deal will be the first of many such transactions. Our special situations team has the unique skills and capabilities to address complex financing requirements extremely rapidly as owners and investors seek to navigate their way through today' s challenging and illiquid global debt market conditions.'

Wainbridge was founded by the former Hines employees in 2010 as an institutional platform. It is run and audited as an institutional vehicle but to date its investors have been self-made high-net-worth entrepreneurs, mainly from Russia and the CIS.

'It will take a few years to get big institutional investor clients,' Rackind said. The current high-net-worth investor base allows Wainbridge the flexibility to move quickly 'as long as the deal makes sense,' he added.

Wainbridge is also involved in investment management and development of super-prime residential properties in selected markets. The firm's debut closed-end investment fund, Wainbridge Global Opportunities London (WGOL), acquires Core+ and Value-Add office and mixed use buildings in Greater London with an element of capital expenditure or leasing risk. To date, WCL has acquired a total of five properties on behalf of the fund and is still in its raising period, which closes at the end-March 2012.

WCL intends to launch further future funds, targeting both high net worth and institutional investors, as well as forming joint ventures with investors and developers.

Last week, Wainbridge announced it has formed a partnership with a Morgan Stanley real estate fund of funds to co-invest in value-added offices in London.

The first project for the Wainbridge-Morgan Stanley Alternative Investment Partners (AIP) partnership is FC200, a 15,230 m² West London office development acquired by WGOL in September 2011. Under the terms of the agreement, AIP will acquire a 49% stake in the project and together the parties will fund the capital expenditure necessary to complete the development.