Tunstall Real Estate Asset Management has raised €55 million at the first closing of its new Netherlands-focused discounted pay-off debt fund.
The pan-European alternative investment manager, led by Roger Clarke, a former JPMorgan banker with 14 years of experience in real estate, has also made its first investment through the DPO Fund 1 – a portfolio of five loans bought for €31.7 million.
The investment is secured on a portfolio of 20 assets across the northern area of the Netherlands, consisting mainly of office properties, as well as warehouse and retail assets.
The fund’s strategy is to acquire non-performing loans with a view to working with the borrower to create performing loan assets, such as through DPO deals where a new loan is issued to refinance legacy debt. Tunstall can underwrite loans at up to 80 percent loan-to-value, the firm said.
Owners and borrowers of residual post-financial crisis NPLs are looking for investors “willing to provide a refinancing package that allows them to unlock the value of the underlying assets”, said Clarke.
The firm said it can play an active role in this speciality lending market in the Netherlands, taking advantage of the asset management platform of M7
Real Estate, its significant minority shareholder. M7 holds a €1.1 billion property portfolio in the Netherlands led by Remko Dickhaut and Femke van Oest.
In June, Tunstall and private investment firm Starwood Capital acquired London housing-led regeneration specialist Pinnacle, in a deal reported to be worth £50 million-£60 million (€55 million-€66 million).