Mark Mwaungulu
A reduced appetite for risk among banks is further opening Europe’s real estate financing market for alternative lenders.
The Swiss asset manager is aiming to tap a broader investor base than for its first fund, which was mainly limited to German investors.
The UK manager is aiming to raise capital for a dedicated continental European vehicle with the aim of beginning lending this year.
The firm is looking to raise €300m from institutional investors for the residential-focused vehicle.
The rating agency says refinancing risk is particularly severe for sterling-denominated loans within securitisations.
The firm, which launched the predecessor Generali Real Estate Debt Investment Fund in 2019, is targeting a €1bn raise.
The $1.2bn manager is set to provide a whole loan to a London-based developer.
The alternative lender is looking to grow its evergreen global Mortgage Income Fund to $500m in the next few years.
According to the industry body’s latest investor survey, 62% expect to increase their allocations to credit vehicles in the next two years.
The manager, which has sourced a £42m loan for a Birmingham BTR scheme, will pause further borrowing activity in the sector due to the rising cost of debt.