Aviva Investors real estate multi-manager has invested in TH Real Estate’s debut property debt fund, the UK Enhanced Debt fund.
“We think this opportunity’s positioning strongly differentiates it from alternative debt offerings and strategies currently available in the market and should therefore offer attractive risk-adjusted returns for our clients,” said Eudes Berthelot, fund manager at Aviva Investors Global Indirect Real Estate.
The fund has completed its first close with £138m, also attracting investment from TH Real Estate’s US parent TIAA-CREF. It is targeting IRRs of 6-7%, investing in whole loans and selective mezzanine up to 75% LTV. It has already completed three UK loans totalling £200m.
Aviva Investors has its own real estate lending platform, Aviva Commercial Finance, which provides long-dated, fixed rate finance, and a senior debt fund. The latter focuses on five to 10 year loans of up to 65% LTVs.