Hermes is looking to set up a debt platform which could result in the fund manager joining its peers in a move to provide senior or mezzanine debt.
The fund management group has talked to a number of specialists already active in the UK real estate debt space and has discussed hiring an individual or team to lead the strategy.
Sources said the group’s real estate division, which is owned by the BT Pension Scheme, has been working on plans “to go down the senior debt fund route”, although no final decision has been made.
It is not the first time the fund manager has looked at a move into debt. In 2009, Hermes launched an alternatives division to invest in assets such as property debt, listed property shares and derivatives. In the same year, it held talks with Lehman Brothers banker Natalie Howard about awarding the bank a £150m mandate to buy distressed debt.
Both initiatives were scuppered by the downturn.
Also this week, the fund manager appointed Saker Nusseibeh (pictured) as chief executive to replace Rupert Clarke.
Nusseibeh joined Hermes in 2009 as main board director and head of investment and has been acting chief executive since Clarke stepped down last November after four years in the role.
His appointment takes effect immediately.
He will work alongside head of property Chris Taylor, who has led the property division, which manages UK and international portfolios worth more than more than £5.8bn, since 2010.
Hermes declined to comment.
