German real estate investment company LINUS Capital opens London office
LINUS Capital continues, a Berlin-based investment company which finances real estate projects with debt and mezzanine capital through its self-managed GBP320 million debt fund, has opened a new office in London.
LINUS gives experienced private and institutional investors the opportunity to participate in these investments while always acting as an anchor investor contributing at least 25% of the investment volume from its debt fund. Driven by its success in Germany - LINUS has financed more than 40 real estate projects with capital in excess of GBP50 million in only four years - the company is now exporting its unique business model to the UK. The new office of Linus Capital will be based in London Mayfair and led by the two Managing Directors Lukas Endl and Lee Abdul Sow.
LINUS Capital will focus on investment opportunities of GBP5 to GBP50 million in Greater London and other major UK cities. "The small to mid-market segment offers great opportunities for us and our co-investors, as we are filling a significant gap in the market. As established real estate financiers have paused lending activities in the UK due to Covid-19 and Brexit fears, there is a unique window of opportunity to scale our operations quickly", explains Lee Sow. “Our entrepreneurial approach combined with the ability to provide higher gearing than most other lenders gives us an edge in the market” says Lukas Endl.
The two Managing Directors have extensive experience in the real estate and alternative investments sector and have already built up a broad network in the UK. Lukas Endl studied Real Estate Finance at Cambridge University and has implemented projects in the sector for McKinsey. Before joining LINUS, Lee Sow worked for the financial sponsors team of Credit Suisse and for the high-yield credit team of Oaktree in London and is therefore well acquainted with the credit market.
For LINUS CEO David Neuhoff, the UK market offers many opportunities: "Despite Brexit, London is still the number one capital market in Europe and one of the most important real estate markets globally. The city continues to attract substantial capital from investors across the globe. Even though the market is highly competitive, we see immense potential here. By leveraging the extensive on-site experience of our team, our lean structure and fast decision-making processes, we are able to provide financing within a very short time frame – this is our key competitive advantage."
In 2020 LINUS Capital plans to invest up to GBP100 million in the UK.