Germany-focused real estate lending platform launches
Asset managers Bayview and Patrimonium have launched a commercial real estate lending platform focused primarily on Germany, with an initial commitment of €500m (£433.8m).
The platform will provide two-to-five-year senior whole loans and subordinated debt financing to the German commercial real estate market, as well as to selected neighbouring countries including the Netherlands, France and Luxembourg.
The strategy will target loan opportunities ranging from €20m to €100m plus and support established borrowers refinancing existing assets or funding acquisitions of new properties and portfolios.
Read More: AB CarVal grows US real estate platform through partnerships
“The strategy is sector-agnostic across multi-family residential, retail, logistics, hotels and high-end office properties,” said Clement Jacquesson, head of real estate debt at Switzerland-based €5bn Patrimonium. “Our partnership will help rebalance the funding gap by offering flexible financing solutions with first and second ranking loans up to 75-80 per cent loan-to-value.”
The platform has completed its first transaction, a €38.5m senior facility secured against a fully let outlet centre in Rostock, Germany.
“We have monitored the German real estate debt market for two decades, anticipating this moment of dislocation,” said Daniel C. Heine, co-founder and managing director of private credit at Patrimonium. “We are convinced that German banks are now being forced to gradually retrench from real estate financing, and the market will evolve similarly to the UK, Dutch and US markets.”
Read More: Commercial property distress emerging in mezzanine debt
“Given the fragmentation and granularity of this asset class, origination is difficult and Patrimonium’s decades of experience in the mid-market corporate space provides a natural access point for high-quality real estate loans serving one of Bayview’s core markets globally,” said Pierre Lussato, head of Bayview International.
Bayview manages $37.5bn in assets and is headquartered in Florida, US.
