Chain Capital plans to take advantage of high interest rates and an exit from bank lenders to raise 7.5 billion pounds (8.6 billion euros) for two European property bond funds.
Global alternative investment manager invests £5bn in its 8th Senior Loans Strategy, targeting senior lending and recapitalization investments through its Chain Real Estate Credit Holdings (CRECH) programme, and its 9th Capital Solutions Strategy The company is looking to raise a hard cap of £2.5bn. .
The senior loan strategy will focus exclusively on senior loan execution across core, core plus, value-add and development assets in the UK and Western Europe. Capital Solutions Strategies has secured £650m of capital commitments to date and has also undertaken senior loans and a comprehensive portfolio across the capital stack including subordinated debt, hybrid credit and commercial mortgage-backed securities. We plan to provide a solution.
Retrenchment of banks amid rising lending costs is expected to open up opportunities for non-bank lenders such as debt funds.
“The end of the zero interest rate environment will bring about a much-needed realignment of asset values, eliminating the need for obsolete assets,” said Ravi Stickney, Managing Partner and Chief Information Officer of Chain Real Estate. “This will result in a shift away from assets and toward more productive assets that are needed in the long term.” It has been sustained by low interest rates. We believe this transition will occur over the next five years.
“At the end of this period, owners of thematic assets that address long-term structural needs and have the best environmental and social credentials will prosper. However, this transition will require significant capital and require innovative and complex solutions. With our substantial local presence, track record and extensive knowledge, Chain Real Estate is positioned to deliver these solutions to best-in-class trading partners across the UK and Europe. We are in a good position to do so.”
Stuart Fiers, co-founder and president of Chain Capital, said: “We believe that Chain is one of the few European-based real estate bond management companies with a long and consistent track record and a large team with experience across all required aspects.” Real estate debt manager.
“This, combined with our local presence through our network of offices across Europe, allows us to build deep and trusted relationships with our borrowers, and we look forward to providing funding through the next iteration of the CRECH program.” We were able to build a strong financing pipeline.”
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