Real Estate Capital Europe’s Active Lenders 2023: Alternative lenders, Part 2

Part four of our guide to the finance providers making their mark in Europe.

DRC Savills Investment Management

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

Lending in 2022: €297m
Lending in 2023 to end Q3: €432m
Loan book at end Q3 2023: €2.4bn

The UK-based manager’s reported 2023 lending to the end of Q3 comprised €220 million of senior loans, €138 million of whole loans for investment properties and €73 million of construction loans. In April, it closed a £63.5 million, circa 60 percent LTV senior loan to finance the speculative construction of two prime logistics assets in the south of England. In Ireland, in August, it provided a €15.6 million loan for a portfolio of nine Dublin residential assets, which had been refurbished. It also provided a £29.5 million loan to finance the acquisition and refurbishment of a portfolio of residential assets in Bristol and Nottingham, and a €38.5 million refinancing of a newly built student housing asset near Madrid.

ICG Real Estate

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

Lending in 2022: €789m
Lending in 2023 to end Q3: €618m
Loan book at end Q3 2023: €3.67bn

The London-based manager’s 2023 lending was weighted towards €414 million of development financing. New loans accounted for €596 million of the overall volume. In September, it committed a £243 million facility to developer Related Argent for the delivery of a 484-unit build-to-rent and mixed-use commercial scheme in the second phase of the Tottenham Hale regeneration in North London. In July, it completed a €38 million whole loan financing of eight hotels in France, leased to the B&B Hotels group. In March, it agreed to a £94 million loan to a joint venture between Related Argent and manager Invesco to finance the development of 249 BTR units and commercial space at Brent Cross Town, London.

Incus Capital

Senior, mezzanine lender
Active in Spain, Portugal, Italy, France

Lending in 2022: €165m
Lending in 2023 to bend Q3: €264m
Loan book at end Q3 2023: €544m

The Madrid-based lender reported a higher volume for the first nine months of 2023 than for the whole of 2022, including €119 million of senior loans and €145 million of mezzanine. In May, it closed Project Forum, a five-year development financing of up to €114 million for a five-star hotel near Barcelona. In April, it closed Project Ferrocarril, a €40 million, five-year development financing of 10 affordable build-to-sell residential projects in Spain. In July, it closed Project Healing, a €40 million, six-year corporate loan to a Spanish biotech company to finance the completion of the expansion of its production facilities.

LaSalle Investment Management

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

Lending in 2022: €894m
Lending in 2023 to end Q3: €724m
Loan book at end Q3 2023: Undisclosed

The US manager’s 2023 European real estate lending to the end of Q3 was split between €347.4 million of senior loans and €367.8 million of mezzanine loans. The total was done across five deals. Of the total, €262.4 million backed developments. It provided a €326 million mezzanine loan as part of the refinancing of a portfolio of 15 luxury Spanish hotels in Q1 for Blackstone. In Q2, it provided a £130 million green loan to support developer Greystar’s construction of a 770-bed student housing scheme in London. LaSalle also provided a £97 million green loan in October to finance the development of a 286-unit BTR residential scheme in London.

M&G Investments

Senior, mezzanine, whole loan, development lender
Active in UK and Western Europe

Lending in 2022: €830m
Lending in 2023 to end Q3: €660m
Loan book at end Q3 2023: €5.14bn

The UK investment manager’s €660 million of lending in the first nine months of the year was completely comprised of new loans, with no refinancing activity. It reported completing financings in the office, logistics, and hotel sectors in the UK and Continental European markets during the year to date. It is understood that, in January, M&G funded a £200 million senior loan to refinance the UK hotel portfolio of owner Vivion Group. The debt was previously securitised in the Ribbon Finance 2018 commercial mortgage-backed securities issue.

Maslow Capital

Development lender
Active in UK

Lending volumes and loan book size undisclosed. Lending in 2023 to end Q3 known to be at least €993m

The living sectors development lender did not confirm volumes, but publicly reported deals tally to £857 million. In March, it provided a £258 million, four-year development facility to managers SevenCapital and MARK for a 462-home prime residential-led scheme at 100 West Cromwell Road in London’s Kensington. In the same month, it announced a £114 million development facility to family-owned Union Property Development for a 356-bed student housing scheme in Paddington, London. In June, it refinanced three student housing assets with a £147 million loan to provider Future Generations. In September, it provided a £128.5 million loan to developer Select Property for the One Port Street scheme in Manchester.

Morgan Stanley Investment Management

Senior lender
Active across Europe

Lending in 2022: €698m
Lending in 2023 to end Q3: €368m
Loan book at end Q3 2023: €2bn

The investment management arm of US banking group Morgan Stanley, lending through its North Haven Secured Private Credit vehicle, provided €197 million to finance residential properties, €136 million for logistics properties and €35 million for hospitality properties in 2023 to the end of Q3. In March, it provided a £125 million financing of a portfolio of UK multifamily assets, containing 29 residential blocks. In June, it participated in a five-year senior financing for a Swedish logistics portfolio. In the same month, it financed the acquisition, refurbishment and extension of a UK light industrial park. Other deals included the April financing of the acquisition and refurbishment of an Irish residential scheme.

Niam Credit

Senior lender
Active in Sweden

Lending in 2022: €470m
Lending in 2023 to end Q3: €280m
Loan book at end Q3 2023: €1.52bn

Stockholm-headquartered manager Niam’s 2023 lending, focused on its home country, composed entirely of new loans. The firm added that around €135 million was paid out between the end of Q3 and its submission for the list in October. In the third quarter, it provided a €97 million financing of a mixed-use portfolio, concentrated on Stockholm. During the same quarter, it provided €94 million to finance a light industrial portfolio in the greater Stockholm area. It also closed an €83 million financing of a warehouse and office portfolio in growth regions of Sweden. Niam acquired the debt business of Sweden’s Brunswick Real Estate Capital in 2022, paving the way for its entry into the property lending market.

Nuveen Real Estate

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

Lending in 2022: €992m
Lending in 2023 to end Q3: €741m
Loan book at end Q3 2023: €5.6bn

The US manager provided €479 million of senior, €176 million of mezzanine and €86 million of whole loans. Deals included a £150 million, 10-year development-to-term loan in February to an affordable private rental housing provider for the forward purchase and construction of 850 UK single-family housing units. In March, it provided a €105 million, seven-year loan to finance a portfolio of 20 self-storage facilities in Spain. The loan will also finance capex. In February, it provided a €53.5 million, five-year loan for three logistics assets on the eastern side of Berlin. It wrote a €95 million, three-year senior loan for a portfolio of 295 private rented sector units in Dublin and a £78.5 million, one-year mezzanine loan for a portfolio of luxury retail, office, hospitality and residential assets in Mayfair, London.

PGIM Real Estate

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

Lending in 2022: €1.1bn
Lending in 2023 to end Q3: €763m
Loan book at end Q3 2023: €6bn

The US-headquartered manager’s 2023 deals included a £123.9 million loan in June to a UK care home provider to recapitalise 13 elderly care homes and three development sites in England’s West Midlands. In September, it provided an £80 million floating-rate senior investment loan to manager Valor Real Estate Partners for a portfolio of 11 multi-let industrial properties located across Greater London. Deals since the end of Q3 include a £150 million loan in November to finance Get Living’s Portlands Place build-to-rent scheme in London, which will contain 524 new homes, plus commercial use including co-working space.

PIMCO

Senior, mezzanine, whole loan, development, loan-on-loan lender
Active in Germany, France, UK, Ireland, Belgium, Spain, Austria, Italy, Czech Republic, Poland, Sweden, Netherlands

Lending in 2022: €3.85bn
Lending in 2023 to end Q3: €1.35bn
Loan book at end Q3 2023: €16.1bn*

The manager’s submission incorporated PIMCO Prime Real Estate, which rebranded from Allianz Real Estate in January, and the real estate lending business that operates under the PIMCO name. Of the €1.35 billion volume, €722 million is managed by PIMCO Prime Real Estate. In March, PIMCO financed the ground-up development of a 667,000-square-foot office and residential complex in Germany, providing €207 million of €357 million. It also provided a £138 million ground-up development financing of a life sciences property in Oxford.

* including €13bn managed by PIMCO Prime Real Estate

Precede Capital Partners

Whole loan, development, preferred equity lender
Active in UK

Lending in 2022: €979m
Lending in 2023 to end Q3: €477m
Loan book at end Q3 2023: €1.83bn

UK-based development lending platform Precede Capital, which originates, underwrites and syndicates whole loans for living sector schemes, arranged £416 million of whole loans in the first nine months of 2023. In March, it closed a £188 million, five-year whole loan to a joint venture between developer Apache Capital, manager Harrison Street and insurer NFU Mutual for 722 apartments at Great Charles Street in Birmingham. In January, alongside Japanese bank Nomura, it facilitated a £228 million loan to Downing Living for the First Street co-living development in Manchester, in its first deal since announcing a £1 billion partnership with Canada’s QuadReal Property Group.

Starwood Capital Group

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

Lending in 2022: €869m
Lending in 2023 to end Q3: €872m
Loan book at end Q3 2023: €6.2bn

US manager Starwood’s 2023 lending to the end of Q3 was all in whole loans and 64 percent weighted towards investment financing, with the remainder in development loans. Eighty percent was new loans. In July 2023, it closed a £267.5 million participation in a £535 million whole loan for the development of a 1,308-unit build-to-rent residential scheme in London. In September, it closed a £138 million whole loan secured by a portfolio of seven logistics assets in the UK leased to a food retailer. In June, it closed a €180 million whole loan for six boutique luxury hotels across Europe. It also closed industrial deals in Germany, France and the Netherlands, as well as hospitality and prime office deals in Ireland.

Starz Real Estate

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

Lending in 2022: €190m
Lending in 2023 to end Q3: €203m
Loan book at end Q3 2023: €600m

The London-based firm’s whole loan lending was all focused on standing assets, with 70 percent in refinancing deals. Starz said it uses back leverage in its transactions. In June, it provided a €93.5 million refinancing facility to Brookfield for SI-Centrum in Stuttgart, a mixed-use entertainment centre. In April, it closed a £40.9 million senior loan to HIG Capital and Ducalian Capital for the refinancing and expansion of 10 UK self-storage properties. The loan included a refinancing tranche and an acquisition tranche, plus a capex element. In August, it provided an acquisition and capex senior facility secured by a light industrial and distribution asset near Paris for affiliates of Fortress Investment Group.

Tristan Capital Partners

Whole loan lender
Active in UK, France, Germany, Netherlands, Finland, Portugal

Lending in 2022: €233m
Lending in 2023 to end Q3: €322m
Loan book at end Q3 2023: €710m

In April, UK-based private equity real estate firm Tristan provided a senior debt financing of up to €80 million to French developer GDG Investissements for the refurbishment of the historic Hotel Scipion in Paris, to create an educational campus. The loan had a margin ratchet linked to obtaining HQE Excellent and EPC A certifications. In May, it closed a €45 million financing to Dutch housing platform Elfi for a multifamily residential scheme in Rijswijk in the Netherlands, which financed the acquisition and conversion of three consented office buildings. In October, it closed a £64 million loan to Capital-38, a family office, for the comprehensive refurbishment of an 80,000-square-foot office property in London’s Bloomsbury.


To read more from our Active Lenders 2023, click here