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 Preferred 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
Senior Living & Healthcare
- Retirement homes
- Nursing homes
- Specialist care
Social & Affordable Housing
- 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
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
- 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.
- 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)
- Long-term investments aimed at delivering a stable yield to investors
- Developing and investing in UK residential property aimed at delivering long-term impact for key demographics
- Investments range across general needs housing for key worker, affordable and social rent in addition to sheltered & supported accommodation, and senior care for the elderly
- Operated by quality counterparties and commercial organisations to provide best in class service
In-House Development, Forward Funding & Acquisition
- 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
The Cheyne Real Estate team prioritises the continuous enhancement of ESG credentials across the portfolio, and its success is aligned with the delivery of positive outcomes for all its stakeholders, not least the communities in which the buildings that it finances, live, work and enjoy.
Cheyne believes that an overarching focus on ESG considerations is entirely aligned with our investment goals.
1) Sustainability credentials directly support real estate valuations
2) Sustainable, energy efficient buildings are more valuable to asset owners by supporting higher rents, lower vacancies and lower operating cost and supporting exit valuations
ESG considerations in our investments are not merely a passive analysis but rather the opportunity to effect positive change
1) Cheyne Real Estate is a key stakeholder in our investments, frequently the sole lender to a real estate asset
2) This provides the ability to directly engage with all new sponsors to help drive the ESG agenda directly and seek to address any deficiencies and opportunities to improve sustainability credentials of the asset
3) This is particularly relevant in development, value-add and transitional financing, which represents a core focus for Cheyne Real Estate