London-based alternative investment manager Cheyne Capital Management has said that its fifth real estate debt fund has reached its £600 mln (€670 mln) hard cap target at close.
The vehicle, Cheyne Real Estate Credit Fund V - Opportunistic (CRECH V), brings the net assets of Cheyne’s Real Estate group to £2.3 bn.
'European real estate debt markets continue to be structurally inefficient. Regulatory pressures have reduced the lending volume and risk appetite of European banks, creating a sustained demand for non-bank lending,' said Jonathan Lourie, CEO and founder of Cheyne Capital.
CRECH V is the fifth fund in Cheyne’s real estate direct lending strategy, which launched in 2011 following on from the firm’s real estate bond strategy in 2009.
CRECH V takes an opportunistic approach to the asset class, targeting double-digit returns and focusing on senior lending to mid-market borrowers on value-add assets and also in core/core+ senior and mezzanine lending to large global institutional borrowers.
Approximately 80% of the fund’s capital has already been deployed, with investments including a €155 mln senior loan to French luxury hotel operator, LOV Hotel Collection, a £105 mln whole loan to Quintain to fund the development of a residential and office building on the Wembley Park site, a £100 mln whole loan to fund the development of two bespoke residential schemes in central Manchester, and a £35 mln junior loan to SME regional housebuilder Larkfleet Homes.
All of the fund’s investments are in Western Europe.