Tessin secures SEK 600m credit facility from Pollen Street

Swedish residential real estate lender Tessin has received a SEK 600m (£44m) credit facility from asset manager Pollen Street Capital to help it deliver its growth plans.

The facility will provide financing to local experienced housing developers. This will help support the delivery of hundreds of new affordable residential housing units across major Swedish metropolitan areas.

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Tessin is a Swedish non-bank lender within the Nordic real estate market offering financing to real estate companies through private, professional and institutional investors.

“This deal represents a significant milestone for Tessin as it enables us to offer our developers committed development facilities for the first time,” said Heidi Wik, chief executive of Tessin.

“This long-term capital will be deployed into Swedish residential development projects, with the total lendable capital over the facility period expected to be in excess of SEK 1.5 billion. This will strengthen our position as the leading non-bank lender within Residential Real Estate as we have the capital to support property developers who are ready to act as the housing market has begun to stabilise.”

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Pollen Street investment director Ethan Saggu added: “Tessin has significant potential in the market, as the company is led by a knowledgeable and experienced management team.

“Over the past decade they have built strong relationships with local developers, which has been gained over their SEK 6bn of lending to date. We look forward to the partnership and delivering the new affordable housing units which are in demand across the main Swedish hubs.”

Tessin has facilitated approximately SEK 6bn of lending across more than 550 real estate projects since 2014.

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