Cheyne Capital raises €670m for fifth European real estate debt fund

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.


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