The 2022 edition of our annual list of leading lenders serves as a snapshot of an industry functioning during challenging times. Below is part two of the alternative lenders making their mark in Europe.

Cain International

Senior, whole loan, development lender
Active in UK, Italy, Ireland

Lending in 2021: €757m
Lending in 2022 to end Q3: €410m
Loan book at end Q3 2022: €1.8bn

In May, London-based Cain provided £261.1 million of construction finance for Shinfield Studios near London, which will be one of the UK’s largest film and television production facilities. In June, it provided £86 million of development finance to private equity firm BauMont Real Estate Capital and developer YardNine for a 95,000-square-foot office scheme in London called ‘Edenica’, for which BREEAM Outstanding is being targeted. During 2021 and 2022, more than £190 million was lent through its Fortwell debt strategy against 15 new care home and two retirement living schemes. This year, Cain fully integrated the lending business, in which it acquired a majority stake in 2018.

Cheyne Capital

Senior, mezzanine, whole loan, development lender
Active in UK, Ireland, France, Germany, Spain, Portugal, Netherlands, Nordics

Lending in 2021: €1.5bn
Lending in 2022 to end Q3: €1.6bn
Loan book at end Q3 2022: €4.8bn

In April, the London-based lender provided £219 million to Goldman Sachs-backed Riverstone for a later living property in London’s Kensington in the UK’s largest single-asset debt deal for the sector at that time. The loan included ESG-based margin ratchets. In July, it provided £108 million to Champney’s Health Resorts to consolidate its debt and fund its business plan. Other deals included a September loan to private equity firm Great Grey Investments for The Ensemble in Amsterdam, comprising apartments, offices and other commercial facilities. In May, it provided £90 million to Lifestory for 315 homes across six later living sites.

DRC Savills Investment Management

Senior, mezzanine, whole loan lender
Active in UK, Netherlands, Italy, Spain, Germany, France, Ireland, Denmark, Sweden, Finland, Poland

Lending in 2021: €739m
Lending in 2022 to end Q3: €297m
Loan book at end Q3 2022: €4.9bn

In December 2021, the London-based manager provided a mezzanine loan to finance UK-based Victory Group’s €765 million purchase of Dutch bank ABN AMRO’s 950,000-square-foot head office in Amsterdam, backing what was understood to be the Netherlands’ largest single-asset sale to date at the time. In March, it financed a portfolio of 21 Spanish supermarket assets owned by Blackbrook Capital with triple-net leases to retailer Eroski, through its European Real Estate Senior Debt fund series. In March, in Ireland, it refinanced a 265-bed student accommodation scheme in Cork for developer Elkstone Partners.

Generali Real Estate

Senior lender
Active in Italy, France, Germany, UK, Spain, Nordics, CEE

Lending in 2021: €522m
Lending in 2022 to end Q3: €440m
Loan book at end Q3 2022: €1.3bn

The Italian insurer’s real estate debt fund was the sole lender in June of a £101 million loan for the acquisition and refurbishment of a 473,000-square-foot prime, mixed-use asset in London, understood to be US manager Hines’ refurbishment of the former Burlian House on the city’s Oxford Street. In March, it was sole lender of a €42.5 million loan to a European private equity sponsor for the acquisition of a 43,000-square-foot retail asset on Milan’s Corso Buenos Aires, with a 50 percent loan-to-value. In December 2021, it closed a deal in the Nordic market, participating with €95 million in the syndicated senior financing of a portfolio of Finnish office and retail assets.

ICG Real Estate

Senior, mezzanine, whole loan, development, preferred equity lender
Active in UK, northern and western Europe

Lending in 2021: €1.1bn
Lending in 2022 to end Q3: €636m
Loan book at end Q3 2022: €3.7bn

In July, the UK-based firm closed a circa £80 million whole loan, through its in-house green loan framework, to AnaCap Financial Partners and Maya Capital for the acquisition of 160 Blackfriars Road in London, and its refurbishment into an office, hotel and retail scheme. It also closed an €85.8 million mezzanine loan through its green loan framework for the acquisition of an office campus in Berlin, to fund capex aimed at improving energy efficiency. ICG also provided a £56.5 million whole loan to Dominus Group for the acquisition of a 74,000-square-foot office building at Friary Court in London, which is set to be redeveloped as purpose-built student accommodation.

Incus Capital

Senior, mezzanine, development, preferred equity lender
Active in Spain, Portugal, France, Italy

Lending in 2021: €211m
Lending in 2022 to end Q3: €350m
Loan book at end Q3 2022: €469m

Incus has established itself as a major non-bank lender in Spain, which also lends outside its home country. In total, €257 million of its 2022 lending to the end of Q3 funded developments. Deals included €112 million to a Spanish residential developer for 10 new build-to-rent properties, with more than 1,320 for affordable rent. It also provided a €40 million senior loan for the development of 12 affordable residential for sale projects in Spain. Incus also provided a €114 million senior financing for the development of a new five-star hotel in Barcelona, for a German private equity sponsor. Other deals included €19 million for the acquisition and refurbishment of an office tower in Milan, which had had no significant capex investment since the 1980s.

LaSalle Investment Management

Senior, whole loan, mezzanine, development, corporate lines, NAV facilities, preferred equity lender
Active across Europe

Lending in 2021: €564.3m
Lending in 2022 to end Q3: €985.9m
Loan book at end Q3 2022: €4.5bn

The US-headquartered manager’s 2022 lending, to the end of Q3, included around €101 million of joint venture and preferred equity investment. Development finance accounted for €293.4 million of lending. Between March and August, the firm provided €100 million of debt to support the acquisition of a pan-European urban logistics portfolio, a sector it has targeted across Europe. In June, it provided a €70 million acquisition line to support a sponsor as it assembled a Helsinki-area urban logistics portfolio.

M&G Investments

Senior, mezzanine, whole loan, development, preferred equity lender
Active in UK, Western Europe, Nordics

Lending in 2021: €986m
Lending in 2022 to end Q3: €668m
Loan book at end Q3 2022: €5.2bn

The UK manager’s 2022 lending to the end of Q3 was weighted towards senior investment finance. In April, it completed the £270 million, seven-year refinancing of a portfolio of more than 200 multi-let UK industrial estates. In September, it provided £120 million to self-storage company Big Yellow to refinance 15 assets mainly in London. Other deals included £79 million to finance a West End of London office, and mezzanine debt for the owners of a retail asset, also in London’s West End. Continental European business included a top-up loan for a portfolio of Swedish logistics.

Morgan Stanley Investment Management

Senior, whole loan, loan-on-loan lender
Active across Europe

Lending in 2021: €805m
Lending in 2022 to end Q3: €400m
Loan book at end Q3 2022: €1.7bn

In the first three quarters of 2022, the North Haven Secured Private Credit fund business of MSIM provided €282 million against residential properties, €84 million against logistics and €34 million against offices. Of its €400 million of loans, €152 million contained capex lines. In September, it participated in the senior financing of a Spanish student housing portfolio across more than 10 university cities. In June, it provided senior facilities to finance a new asset manager’s platform targeting the acquisition, development and leasing of data centres and light industrial facilities in Finland. Other deals included a senior debt commitment in March to finance the development of affordable housing in the UK.

NN Investment Partners

Senior lender
Active across Europe

Lending in 2021: €1.45bn
Lending in 2022 to end Q3: €1.31bn
Loan book at end Q3 2022: €4.5bn

The Dutch manager, which was acquired by Goldman Sachs Asset Management in April, was a major lender through club deals alongside banks, and through syndications. In April, it provided around €150 million of the €290 million stepwise acquisition financing of a portfolio of build-to-rent apartments in Spain. In August, it provided €50 million of the €265 million acquisition and capex financing of a German residential portfolio of 35 properties. The loan will support the improvements to the energy efficiency of the portfolio. In December 2021, it provided more than €150 million of a €385 million and £120 million cross-currency facility to finance more than 40 logistics assets across Europe. In total, it closed more than 35 transactions across 12 countries during the period, including logistics, residential, offices and retail property.

Nuveen Real Estate

Senior, mezzanine, whole loan, development lender
Active in UK, Ireland, Germany, Spain, Netherlands, Portugal

Lending in 2021: €717m
Lending in 2022 to end Q3: €606m
Loan book at end Q3 2022: €4.9bn

In 2022 to the end of Q3, the manager closed eight transactions, with €420 million of senior debt and €184 million of mezzanine. Development loans accounted for €298 million. During Q2, it provided a £125 million mezzanine loan, at 40-60 percent loan-to-value, for a prime mixed-use scheme in London, including 57 super-prime residential units. In Q1, on behalf of its parent, US insurer TIAA, it provided a 10-year £130 million green development loan at 70 percent loan-to-cost for a grade A logistics development in the UK’s West Midlands. In the same quarter, it provided a €130 million, five-year senior green loan, including fixed and interest-only floating-rate elements, for a recently built portfolio of 342 apartments across Dublin.

PIMCO

Senior, mezzanine, whole loan, development, preferred equity, loan-on-loan lender
Active across Europe

Lending in 2021: c€1bn
Lending in 2022 to end Q3: c€1.5bn
Loan book at end Q3 2022: undisclosed

The US manager has deployed more than €4 billion of capital into European real estate debt in the past five years. In the first nine months of 2022, it was active across several European countries and sectors. Its transactions included several central London office loans, including transactions to finance construction, repositioning projects, and lease-up strategies. PIMCO also financed industrial assets in the UK, Ireland, and continental Europe, and was active in the hospitality sector. In January, Belgian newspaper L’Echo reported PIMCO provided €105 million of financing to Belgian property company Ghelamco for the Wings office development near Brussels.

PGIM Real Estate

Senior, mezzanine, whole loan, development, preferred equity lender
Active across Europe

Lending in 2021: €1.3bn
Lending in 2022 to end Q3: €1.2bn
Loan book at end Q3 2022: €6.2bn

The manager’s 2022 lending to the end of Q3 included €616 million of mezzanine financing, demonstrating sponsor demand for subordinate financing. Its loans included a £48 million acquisition and construction loan to developer Court Collaboration in July for a 550-unit build-to-rent scheme in Birmingham. In September, it provided £148 million for a 973-bed student housing portfolio in London. Also in London, it provided £33.7 million of acquisition financing in April for three newly completed apartment buildings. Continental European business included a €65 million development facility for four sites in Spain on which speculative logistics project are planned.

Starwood Capital

Senior, mezzanine, whole loan, development, preferred equity lender
Active across Europe

Lending in 2021: €3.3bn
Lending in 2022 to end Q3: €720m
Loan book at end Q3 2022: €5.8bn

The US private equity firm closed eight European real estate lending deals in the first nine months of 2022, of which €157 million funded developments or refurbishments. Deals included €244 million for an office acquisition and refurbishment in Germany, a €136.7 million Irish hotel portfolio refinancing and a £164.5 million refinancing of 32 UK care homes. In December 2021, after the last Top 50, it provided £365 million to developer Get Living for the regeneration of the former Elephant & Castle shopping centre in London into 485 rental homes, shops, leisure space, offices and educational facilities. In the same month, it closed a €854.1 million whole loan for the development of data centres in Dublin.

Tristan Capital Partners

Senior lender
Active in UK and western Europe

Lending in 2021: €158m
Lending in 2022 to end Q3: €270m
Loan book at end Q3 2022: €428m

Since Tristan entered the European real estate lending market in 2021, it has provided significant loans. They included £35.4 million in July to a UK developer for the refinancing of London North Studios, one of the UK capital’s largest filming spaces, in a sector in which few lenders have closed deals. In April, it financed the €59.3 million acquisition by funds of AnaCap Financial Partners of South Station, a 60 percent occupied asset in Massy, Paris. In June, it completed an £80 million senior loan to refinance 204 apartments in the Manhattan Loft Gardens tower in the Olympic Park, London. It also provided a €57.3 million senior loan to refinance a self-storage platform in the Netherlands and to finance the acquisition of a bolt-on portfolio.