Resolution Property has entered the real estate debt market with the launch of a €200m debt fund.
The company will target high-leverage loans secured on a range of commercial asset classes throughout Europe. Its debt platform will be funded by institutional investors as well as its affiliate, Fosun.
The first fund, which has now closed, will focus on mezzanine, stretch senior, development and bridge loan financing opportunities across Europe, including the UK. Loans will range between €10m and €20m.
Resolution said it would consider both traditional and alternative sectors, including hotels, student accommodation, healthcare, leisure and residential.
Chris Hillard, previously part of the debt capital markets team at investment banking practice Stifel, is to head Resolution’s debt team.
Robert Laurence, co-founder and chief executive of Resolution Property, said: “Moving into the debt space with the launch of a new platform and closing of our first fund is a significant achievement for Resolution, and an exciting step in the growth of our business.
“The willingness of banks and other traditional sources of capital to finance CRE projects remains constrained, which has resulted in a buoyant market for alternative sources of debt.
“Given our extensive track record and knowledge of the CRE environment, we are ideally positioned to capitalise on this trend and deliver our investors with excellent risk-adjusted yields through the debt market.”
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