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New Mexico pension fund commits to $700m Quadrant real estate debt fund

Quadrant Real Estate Advisors has attracted a $70 million commitment from Public Employees Retirement Association of New Mexico to its Quadrant Enhanced Debt Fund.

Quadrant Real Estate Advisors has attracted a $70 million commitment from Public Employees Retirement Association of New Mexico to its Quadrant Enhanced Debt Fund.

As revealed by Real Estate Capital in July, the specialist real estate debt manager is seeking to raise $700 million by mid 2016 and will hold a first close imminently.

Quadrant’s 11th closed-end, private real estate debt fund will originate fixed-rate first mortgages for the acquisition, refinancing and recapitalization of core commercial real estate assets across the US. The firm will securitize some loans through the commercial mortgage-backed securities (CMBS) market, selling off the senior, lower risk classes and retaining the higher yielding junior ones.

The Atlanta-based company, which has $6bn of commercial real estate assets under management, invests in the UK and Australia as well as the US.

Valentine's House
Valentine’s House

In the last quarter of 2015 it has closed a clutch of deal in the UK, including a £24 million, six-year facility to US investor Newworth for the acquisition of 1 Alie Street on the eastern edge of the City of London and a £30.75 million loan for the redevelopment of an office building in Illford, East London, called Valentine’s House, as residential.

In September, Quadrant took a £35 million mezzanine participation at a 750 basis points margin in a £147 million whole loan written by Lloyds bank for BMO’s purchase of a retail park in Rotherham.

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