Alternative investment manager and lender Cheyne Capital has secured additional capital from the Abu Dhabi Investment Authority for its European real estate credit programme, bringing ADIA’s total commitment to the strategy to £650 mln (€763 mln).
The latest investment is for the ninth vintage of the Cheyne Real Estate Credit Holdings (CRECH) programme, also known as the capital solutions strategy, which continues CRECH’s core focus on senior lending against European real estate.
The strategy also provides solutions across the capital structure, including subordinated debt, hybrid credit and commercial mortgage-backed securities (CMBS). It is part of the capital raise recently announced by Cheyne, alongside a strategy focusing on senior loans only.
Ravi Stickney, managing partner and CIO of Cheyne Real Estate, said: ‘The capital solutions strategy aims to help the European real estate industry transition away from increasingly obsolete assets supported by low interest rates and towards productive, sustainable assets for the long term.
‘With an enormous pipeline of future investments requiring funding, we look forward to continuing to address this need as we open the strategy up to other investors in 2024.’
CRECH’s recent deals include the structuring of a £780 mln loan alongside JP Morgan to Quintain for the refinancing of Wembley Park in London.
Others include a £318 mln loan to Goldman Sachs-backed Riverstone for two later living developments in London, £229 mln to Stanhope for the transformation and extension of 76 Southbank in London into a low-carbon office, €250 mln to Bain Capital and Borio Mangiarotti to deliver 600 new homes in Milan, and over €200 mln to the Beaumier hotel group with lifestyle hotels across France, Switzerland and Spain.
These deals formed part of a total lending volume of over £5 bn in 2022 and 2023.
Mohamed Al Qubaisi, executive director of the real estate department at ADIA, said: ‘We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship.
‘The capital solutions strategy aims to meet the increasing demand for various forms of real estate credit by drawing on Cheyne’s expertise in the European real estate lending market. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital.’