Henderson Global Investors is planning to launch two debt funds to capitalise on the broad retraction of European bank lending.
The fund manager is talking to investors about the Henderson High Income Real Estate Debt Fund, which will invest in both senior and defensive subordinated real estate secured debt.
Investments will predominantly be newly originated and secured by high-quality leased real estate in well-established markets at leverages of up to 75% LTV.
Over an up to a seven-year investment horizon, the fund will target a gross IRR of between 8% and 10%, largely to be provided by coupon income.
It is also working on the Henderson Senior Secured Real Estate Debt Fund. This vehicle will invest in senior ranking and conservatively structured real estate loans at leverage of up to 60% LTV.
The loans will again be newly originated and secured by premium property in the well-established locations.
Over an up to a seven-year investment horizon, the fund will target a total gross return of between 5% and 6% pa.
John Feeney, head of real estate debt, will lead the execution of investment origination and underwriting, drawing on the broad resources of the secured credit and global property teams.
Colin Fleury (pictured), head of secured credit, will provide fund oversight and direction of team resources.
Marcus Langlands Pearse, director of property, will co-ordinate and oversee the real estate debt due diligence process within Henderson’s circa £12.5bn global property business.
Feeney, said: “Investor interest in real estate debt has continued to increase, and many investors are now familiar with the highly attractive risk-adjusted returns available.
“Following detailed research, we have now developed two targeted strategies. With a focus on high-quality property and well-capitalised, expert sponsorship, our aim is to deliver the premium fund products in this fast-evolving market”.
bridget.oconnell@estatesgazette.com
