Alternative lender OakNorth Bank has provided a £45 mln (€52 mln) revolving credit facility (RCF) to Paloma Capital, the private equity real estate investor.
Jack Pitman, founding partner of Paloma Capital, commented: 'The OakNorth facility means we can draw down up to £45 mln on only 48 hours notice, which is great if opportunities come up to buy assets quickly. It also allows us to bridge the gap between completion and the drawdown of senior debt at a later stage.'
Paloma Capital has raised £120 mln out of a target of £200 mln for its latest fund, Paloma Real Estate III, mainly from existing investors in Paloma Real Estate I and II.
Paloma Real Estate III will have an opportunistic strategy and can invest across all sectors and regions.
Although, as with its two previous funds, it will focus primarily on income-producing, multi-let urban industrial and logistics schemes, as well as trade counter, open storage, self-storage and EV charging assets, in addition to a small allocation to value-led retail warehouse investments.
Target assets will typically have the potential to add value from capital investment and active management, concentrating on relatively small lot sizes of £5 mln to £15 mln.
Mohith Sondhi, senior director of debt finance at OakNorth, added: 'Paloma Capital has built up a hugely impressive track record of significant outperformance of the UK market, through astute market segment rotation and a unique focus on repositioning smaller overlooked assets.
'This transaction represented an exciting opportunity for us to provide a capital call facility to a well-sized fund with a list of strong limited partnerships behind them, including large funds and trusts, as well as an array of reputable high-net-worth individuals.'
Paloma has raised a total of around £440 mln of wholly discretionary capital in three value-add funds since 2015, mainly from institutional investors in the UK, Europe, and the Middle East.