Venn Partners has teamed up with online real estate trading platform BrickVest in order to give the platform’s users access to direct lending opportunities in the European commercial real estate market, Real Estate Capital’s sister title, Private Debt Investor reported.
Through the new offering, clients will be able to gain access to mid-market commercial real estate debt opportunities in the UK and selected western European countries. The investments will typically be around 75 percent loan-to-value. Loans will generally vary in length between six months and five years.
The goal of the new offering is to allow a wider set of investors access to the commercial real estate space without the high minimum investments associated with such positions. BrickVest’s platform can also act as a secondary market should investors want to redeem their position, Emmanuel Lumineau, told PDI.
The caveat, however, is there has to be a buyer willing to purchase access to Venn’s investments via the platform, Lumineau added. “In real estate there is no guaranteed liquidity,” he said. “You can’t have a liquid fund if the underlying asset is illiquid.”
BrickVest chose to partner with Venn since the firm showed a willingness to try something new. It also has a solid reputation from potential clients. “We wanted someone with an institutional following,” Lumineau said.
Aside from commercial real estate, Venn also entered the Dutch mortgage space in 2016. The firm recently told PDI it’s looking to increase mortgages funded by investors on a whole loan basis, aiming to raise €400 million by the end of 2017.
In the announcement from the firm, Venn Partners noted the attractiveness of a broader number of investors having access to its investment strategy. A spokeswoman for Venn Partners declined to comment beyond the announcement.