TH Real Estate has completed the first close of its £500 mln (€568 mln) Global Real Estate Debt Partners – Fund II (UK), and commenced its investment programme with a £44 mln (€50 mln) loan in the South East of England.
TH Real Estate said that capital had been committed from Asian, US and European institutions.
The seven-year term fund invests in whole loans up to 75% loan-to-value, targeting an 8-9% gross IRR and 6% net income return.
'The success of this first close demonstrates the appeal of investing in debt and in particular, our strategy, which aims to offer a measure of downside and performance protection, diversification and the opportunity for stable income-focused returns,' said Christian Janssen, TH Real Estate's head of commercial real estate debt, Europe.
Loan origination is focused on high-quality real estate, well-positioned across South East and regional markets of the UK. The fund will utilise a senior syndication strategy of selected whole loans.
'We are delighted to see investors from our first fund strategy, invest in the second, showing continued support for the platform. The debt team’s experience, global track record and extensive originations network ensures our ability to source and manage the very best opportunity for our clients,' Janssen added.
The first close of the Global Real Estate Debt Partners – Fund II (UK) follows the origination of £1 bn in new loans in 2017 and the completion of £750 mln in new loans so far this year.
The firm's global debt platform recently announced plans to expand into Asia Pacific with the appointment of Martin Priestly as head of debt for the Asia Pacific region.