Mezzanine

The fund will be Lenwood’s first dedicated residential credit vehicle, as it cites investor appetite for the asset class.

Former RBS banker Gareth Taylor has joined the firm as head of real estate debt.

As huge bond repayments loom, the country’s property companies are looking for alternative sources of finance.

In its latest annual report, the adviser said subordinated finance is increasingly important to the viability of development and acquisition deals.

The latest research by the Berlin-based advisory firm shows subordinated lenders are benefiting from German banks’ increased caution.

The Los Angeles-based bridge lender will now also target first mortgages and mezzanine debt.

The Frankfurt-based manager says more caution among banks during the pandemic has created opportunities for subordinated lenders.

The Monaco and London-based manager is understood to have begun fundraising for its third property lending vehicle.

Hanno Kowalski, managing partner of the Berlin-based debt provider, says demand for junior loans against core assets means mezzanine lenders, and their investors, are taking less risk.