approach section
Senior Loan
- Top of the capital structure
- Typically, 0-65% loan-to-value (LTV)
Mezzanine Loan
- Below senior debt in the capital structure
- Typically, 65-85% loan-to-value (LTV)
Listed Credit
- Loans and mortgages are structured as bonds
- Listed on various exchanges
Special Situations & Preferred Equity
- Quasi equity, control investing, distressed debt
- Typically, 85% loan-to-value (LTV)
Direct Asset Investing
- Equity strategy
- Ownership of the asset at deal initiation
Asset Strategies
Cognisant that a challenging global macro backdrop is here to stay, we aim to focus on defensive entry points that can weather significant retrenchments in value and liquidity, whilst ensuring robust governance and control are in place. We look for viable business plans with multiple exit paths and work with established, capable sponsors.
Core / Core+
- Stabilised, fully leased, cash-flowing assets in major core markets
Value Add
- Assets which alter the business plan to seek an increase in cash flow by improving or repositioning the asset
Development
- Ground up or transitional construction projects, typically with planning permission in place
Sectors
Our preference is for non-cyclical / thematic asset classes, with a focus on mid-market and affordable accommodation, offices, and light-industrial / logistics.
Residential
Student Housing
Industrial
Hospitality
Senior Living & Healthcare
Social & Affordable Housing
Office
Mixed Use
Investor Offerings
Real Estate Credit Holdings
Our flagship European real estate lending series launched in 2011, originating predominantly senior loans across core, core+, value-add and development assets.
Real Estate Credit Investments Ltd (RECI)
A listed public vehicle which launched in 2010, investing in real estate debt and bonds in western Europe. More information can be found here: RECI Website
UK Impact Real Estate
Developing and investing in UK residential homes, supporting affordable housing, keyworker homes and assisted living within cohesive, mixed tenure schemes.
Cheyne believes that an overarching focus on ESG considerations is entirely aligned with our investment goals.
- Robust sustainability credentials are value-enhancing and risk-reducing
- Sustainable, energy-efficient buildings are more valuable to owners by supporting higher rents, lower vacancies and lower operating costs
ESG considerations are not merely a passive analysis but also the opportunity to effect positive change
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Cheyne Real Estate is a key stakeholder in our investments, frequently serving as the sole lender on a real estate asset
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This enables direct engagement with all new sponsors to drive the ESG agenda and address any deficiencies and opportunities to improve the asset’s sustainability credentials
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This is particularly relevant in development, value-add and transitional financing
Green Building Credentials
Recognising the value enhancement of sustainability credentials, Cheyne works with our borrowers to evaluate and improve their approach.
We place a high emphasis on green building credentials, particularly BREEAM ratings, and undertake a CREEM alignment analysis to assess each asset's operational efficiency against net-zero benchmarks.
