Europa Capital has launched a UK debt vehicle to provide both whole loans and mezzanine financing in regional markets.
The vehicle, which will provide loans of up to 85% LTV, is structured as a club with commitments of £100m.
It is part of the company’s plan to grow its debt products in response to continued investor demand at a time when greater regulation and caution have stifled some competition in the market.
Europa has appointed David Hardcastle, based in Leeds, and Chris Swarbrick, based in Manchester, as origination consultants in order to broaden its network in the UK regional market. Both joined Europa from Barclays, where they were responsible for real estate lending across the north of England.
Michael Birch, chief executive of Europa’s UK debt subsidiary, said: “Over the last four years we have provided around £200m of loans secured against over 6m sq ft of property. During this period, the UK regional debt market has undergone significant changes due to increased regulation imposed after the GFC and further tightening post-Brexit.
“As a result, there are now a limited number of senior lenders who are prepared to finance transactions with more complex portfolios, with multiple properties and tenants, located across the UK.”
