The new fund will capitalise on the continuing dislocation of the European real estate debt markets and meet the growing demand for real estate finance.
Like its predecessors CRECH I and CRECH II, CRECH III will invest in core European (mainly UK and German) real estate opportunities across the debt spectrum and via a range of instruments (CMBS, senior loans, mezzanine loans, equity and special situations workouts). These funds focus on mid-market borrowers constrained by the more stringent lending criteria and low-LTV senior loans of traditional real estate lenders, as well as by the bias among non-bank players for larger ticket loans.
Ravi Stickney, head of Cheyne’s real estate debt business, says: “Cheyne is launching CRECH III in response to continued investor demand following the success of CRECH Funds I and II, which both closed to new investment last year. As a long-established capital solutions provider for the real estate industry in the UK and Western Europe, Cheyne Capital is well placed to source and understand the attractive opportunities arising from the dislocation in the real estate lending and the CMBS market, which continue to suffer from a supply/demand imbalance.”
Stuart Fiertz, co-founder of Cheyne, says: “As European banks continue to retreat from real estate lending due to increasing regulatory pressures, Cheyne is able to step into the void with a viable financing solution for mid-market borrowers, who are increasingly recognising the team’s ability to understand complex real estate financing needs and execute creative solutions in a short timeframe.”