Cheyne Capital Real Estate completes four senior loans
Alternative asset manager Cheyne Capital's (Cheyne) Real Estate group has completed four senior loan transactions representing GBP232 million of loans on residential, co-living, Grade A office and student accommodation assets in the UK, France and Spain for the latest vintages of its real estate lending programme.
Further senior loan investments in the pipeline for Q4 2020 alone exceed GBP800 million in value and predominantly span the group’s key jurisdictions of the UK, France and Germany.
These transactions continue Cheyne’s programme of lending, mainly via senior loans, on value-add, transitional and development assets, in line with the firm’s preference for lending on assets whose value should increase over the life of the loan. The further withdrawal of other lenders, and the lack of governmental support for European commercial real estate lending in the current crisis, provide Cheyne with a large pipeline of opportunities for both senior loans at defensive loan-to-values (LTVs) and also recapitalisation finance for borrowers in need of capital to address pressures from incumbent lenders.
Cheyne’s Real Estate lending programme (CRECH) launched in 2011 to help fill the gap in financing left by the withdrawal of traditional providers, mainly due to regulatory constraints. Over this period, the Cheyne Real Estate team has committed GBP4.6 billion (USD6 billion) of capital across 98 private credit investments in 8 countries.
Stuart Fiertz, Co-Founder & President of Cheyne Capital, says: “At Cheyne, we have always sought to uncover attractive investment opportunities presented by dislocations and to identify the best ways of delivering their value to investors. As increasing numbers of investors seek access to uncrowded, specialist private credit exposure, European real estate debt today offers a defensive asset class, outsized risk return profile and a longevity of investment thesis. While the unprecedented depth of fiscal and monetary stimulus measures introduced in response to the Covid-19 crisis has closed the dislocations elsewhere in credit and equity markets, we continue to see persistent, and scalable, opportunities in this sector.”
Ravi Stickney, Managing Partner and CIO of Cheyne Real Estate, says: “Covid-19 has accelerated a multitude of irreversible trends in the way we live and work and there will be a long-term shift in the way real estate assets are used and valued. The nimble sponsors we work with are quickly adapting their strategies with transaction demand increasing significantly in the last few months. Whilst the investment case for real estate in the post 2020 world is strong, unfortunately Covid-19 has significantly impaired the availability of sophisticated, innovative capital to fund these much-needed investments. With the support of our investors, Cheyne Real Estate is well placed to provide that capital for the long term, as it has done since the inception of this business over 11 years ago.”