Cornerstone Real Estate Advisers has confirmed it has teamed up with debt origination, execution and loan management business Laxfield Capital to start lending in Europe.
Laxfield will originate and manage loans on behalf of the real estate investment adviser, which is owned by US giant Mass Mutual.
Cornerstone has an initial target lot size of between £25m and £75m, and will offer a fixed-rate product with maturities ranging from seven years to as many as 20 years.
It said the appointment is in line with its strategy of extending into Europe its US commercial real estate debt platform, which originated more than $4bn in commercial mortgages during 2011.
“We believe our fixed-rate programme, which offers longer terms than are typical in the United Kingdom, will be received well,” said Charles Weeks, chief executive of Cornerstone Europe.
“We have a seasoned Cornerstone team on the ground in the UK, that knows the local markets and key participants well; an advantage that will be enhanced by our relationship with Laxfield, as well as by leveraging the extensive real estate lending expertise we already have in the US.”
Cornerstone, which has assets under management totalling $34.7bn, invests on behalf of more than 145 clients around the world.
“This is a very attractive institutional market and a significant opportunity for Cornerstone to geographically diversify its lending portfolio,” said Robert Little, chief investment officer – finance, for Cornerstone. “We are looking forward to expanding rapidly both in terms of products and markets.”
Adam Slater of Laxfield commented: “Securing this new mandate from Cornerstone is a significant step forward for Laxfield, and assists an established and highly reliable global real estate organisation with bringing additional debt capital to the European market. We think it will be especially interesting to offer 7-12 year funding, which we see as restricted in the market at present.
“Cornerstone’s target investment size fits neatly between the business areas of our existing funders and will significantly enhance the range of deals that we can cover.”
bridget.o’connell@estatesgazette.com
