We manage the following investment products:
- Focus on UK and developed European markets across all strategies: Core, Core+, Value-Add & Opportunistic
- Investments centred around short term catalysts to significant value addition and exit
- Robust loan structuring providing control
- Short duration Investments
- Capital preservation as a core overarching focus
- A compelling risk-return profile
- Senior and Mezzanine Loans
- Listed real estate bonds such as Commercial
- Mortgage Backed Securities (CMBS)
- Special Situations
- Pref Equity and
- Direct Asset Purchase
- Defensive credit exposure to UK and European real estate markets
- Stable dividends
- Highly diversified portfolio
- Transparent and conservative leverage
- Senior and mezzanine loans
- Listed real estate bonds such as Commercial Mortgage Backed Securities (CMBS)
- Focus on Core/Core+ assets
- Cash-generating assets in high quality locations in Western Europe
- Robust downside protection
- Short maturity profiles
- Weighted average life of approximately 3 years
Listed real estate bonds such as Commercial Mortgage Backed Securities (CMBS)
- Funds, builds or buys UK residential property for the purpose of providing affordable housing, sheltered accommodation and assisted living for the elderly
- The leases are always long term (typically ~20 years)
- Inflation linked
- Fully repairing and insuring (FRI)
- Let to high quality organisations including local councils and housing associations
Direct Asset Purchase
- We work alongside our investors to tailor solutions which best meet the needs of the investor.
- Customisable mandates in terms of investment strategy, objectives and restrictions.
- May invest alongside other funds managed by Cheyne in the same underlying transactions.
- Typically considered for investors willing to commit GBP100 million to a customised mandate.
- Cheyne sees compelling investment opportunities across the real estate capital structure thanks to our presence in the market.
- Typically for larger global investors interested in analysing deals which do not fit into Cheyne’s managed commingled funds nor SMAs.
- A particular transaction could be either too large for our funds to take 100% of the deal, or not fit the investment strategy of our mandates.
- In these instances we are happy to engage with interested investors who are able to proceed on a co-invest basis.
- The platform invests directly into German residential housing
- Focused on overlooked assets in secondary cities and small to medium transaction sizes
- The platform aims to buy at a discount to replacement cost of circa 65%
Direct Asset Purchases
Our investment types focus mainly on credit, but with the ability to exploit any point in the capital stack. Senior loans and senior bonds are the bedrock of our investing with selective mezzanine loans, typically structured with upside optionality. We also look at distressed opportunities – typically low entry basis and consensual resolution paths with control, and select direct assets – German multifamily being the largest.
Top of the capital structure
Typically 0-65% loan-to-value (LTV)
Below senior debt in the capital structure
Typically 65-85% loan to value (LTV)
Loans and mortgages structured as bonds
Listed on various exchanges
Special Situations and Prefered Equity
Quasi equity, control investing, distressed debt
Typically 85% loan to value (LTV)
Direct Asset Investing
Ownership of asset at deal initiation
Cognisant that a challenging global macro backdrop is here to stay, we aim to focus on defensive entry points, capable of weathering significant retrenchments in value and liquidity, whilst ensuring robust governance and control is in place. We look for viable business plans with multiple paths to exit and work with established, capable sponsors. We eschew long duration “core” in favour of short to mid-term exit plans with significant value creation (“value-add” / “transitional”).
Stabilised, fully leased, cash flowing assets in major core markets
Assets which alter business plan to seek an increase in cash flow by improving or repositioning the asset
Assets in need of significant enhancement in order to realise their potential. This strategy also includes strategic land opportunities.
Real Estate Op-Co/Prop-Co Loan
Loans secured by a real estate company, not its individual properties
Our preference is for non-cyclical/thematic asset classes, with a focus on mid-market and affordable accommodation, offices, and light-industrial/logistics.
- Student Housing
- Build to Rent (PRS)
- Build to Sell
- Co-Living / Micro-living
- Modular homes
- Purpose built developments
- UK and Europe
- Light Industrial
- Nursing homes
- Specialist care
- Retirement homes
- Low Income Housing
- Mixed Tenure
- Supported Living (eg learning disability)
- Independent Living (eg homes for the elderly)
- Open Market Purchase
- Serviced Accommodation
Developments which include a mix of
- Across the UK and Europe
- London value-add