New debt provider Tyndaris Real Estate has raised capital from 15 investors for pan-European credit fund Tyndaris European Commercial Real Estate Finance. The Tyndaris Real Estate business was set up 18 months ago by former Deutsche Bank employees Heath Forusz, Clark Coffee and David White, who joined forces with Raffaele Costa, chief executive of Tyndaris. Tyndaris Real Estate began capital raising a year ago and has deployed €90m in the past six months in three credit investments.
The third, and largest, is a €64m mezzanine loan, part of a recapitalisation thought to be around €350m by an international investor of one office in Berlin and two in Frankfurt. Heath Forusz, co-head of Tyndaris Real Estate, said all three buildings have been recently re-let or had leases regeared: “90% of the cashflow is from three good-credit tenants for at least 10 years”.
Over €200m of new senior debt has been arranged by the borrower. Forusz said the fund’s first two investments were €15m of mezzanine for a borrower’s acquisition of 1,600 German multi-family homes near Berlin and a €15m investment secured on a mainly retail portfolio, also predominantly in Germany. He added: “We are a solutions oriented lender with the flexibility to invest across capital structures, asset classes and jurisdictions.” The team looks at deals on a pan-European basis with a focus on the UK and Germany.
Forusz said: “Fund raising for TECREF is ongoing. We have discretionary capital and separate account mandates that give us the capacity to do significantly more deals. “Investors in TECREF are a combination of high net-worth individuals, family offices and institutions, and we are in due diligence with several large institutional investors, life companies and pension funds.” Raffaele Costa set up London-based alternative investment advisory business Tyndaris after leaving hedge fund GLG.
He has good connections with Swiss and Italian investors. It is thought that some are investing in TECREF and that the fund also has several US investors. “The interesting thing about real estate debt in Europe is that it’s a relatively new asset class in a fund format, so investors are doing their due diligence,” Forusz said. “The limited partner investor base is much broader than two years ago and we believe it will continue to expand.”