Cheyne Capital looks to raise £7.5bn for property lending
Cheyne Capital is looking to raise £7.5bn for its property lending programme, to help meet UK and European borrower demand as banks retrench from the asset class.
The global alternative investment manager is launching the next iterations of its Cheyne Real Estate Credit Holdings (CRECH) programme, with a particular focus on senior lending and recapitalisations.
Its senior loan strategy – the eighth launch in the CRECH programme – will focus on senior property loans in the UK and Western Europe and will target a capital rise of £5bn.
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Its capital solutions strategy will also make senior loans, alongside other solutions across the capital stack, including subordinated debt, hybrid credit and commercial mortgage-backed securities.
Cheyne Capital said that this strategy already has a £650m investor commitment and will be the ninth launch in the CRECH programme with a hard cap of £2.5bn.
“The end of the zero interest rate environment brings a much-needed re-adjustment in asset values and the move to long-term necessary, productive assets and away from obsolete assets held up by low interest rates,” said Ravi Stickney, managing partner and chief investment officer of Cheyne Real Estate.
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“We believe that this transition will take place over the next five years. At the end of this period, the owners of thematic assets, providing for structural long-term needs, and with the highest environmental and social credentials, will thrive.”
CRECH made £2.8bn of loans last year and is on track to lend more than £3bn this year. It has a zero-loss rate on its senior loan book since inception in 2009.
Real estate investments account for approximately half of Cheyne Capital’s $11bn (£8.8bn) of assets under management.
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