Cheyne Capital secures ADIA commitment for its Real Estate Credit – Capital Solutions strategy
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Combines with earlier investments to bring ADIA’s subsidiary’s total commitment to the Capital Solutions strategy to £650 million
Capital Solutions strategy is the latest vintage of the Cheyne Real Estate Credit Holdings (CRECH) programme
London, 12th March 2024 – Cheyne Capital has secured a commitment from a wholly owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for the ninth vintage of the Cheyne Real Estate Credit Holdings (CRECH) programme, also known as the Capital Solutions strategy. This will be added to earlier investments, bringing ADIA’s subsidiary’s total commitment to the Capital Solutions strategy to £650 million.
The Capital Solutions strategy continues CRECH’s core focus on senior lending against European real estate and, in addition, provides comprehensive solutions across the capital structure, including subordinated debt, hybrid credit and commercial mortgage-backed securities (CMBS). The Capital Solutions strategy is part of the capital raise recently announced by Cheyne, alongside a strategy focusing on senior loans only.
CRECH’s recent deals include structuring a £780 million loan alongside JP Morgan for Quintain's refinancing of Wembley Park, London. The deal was viewed as a bellwether for best-in-class residential financing. Other recent deals include a £318 million loan to Goldman Sachs-backed Riverstone for two later living developments in London, £229 million to Stanhope Plc for the transformation and extension of the iconic 76 Southbank in London into an exemplar low carbon office, €250 million to Bain Capital and Borio Mangiarotti to deliver 600 new homes in Milan and over €200 million to the Beaumier hotel group with lifestyle hotels across France, Switzerland and Spain. These deals formed part of a total lending volume of over £5 billion in 2022 and 2023.
Ravi Stickney, Managing Partner and CIO of Cheyne Real Estate, said: “The Capital Solutions strategy aims to help the European real estate industry transition away from increasingly obsolete assets supported by low interest rates and towards productive, sustainable assets for the long term. With an enormous pipeline of future investments requiring funding, we look forward to continuing to address this need as we open the strategy up to other investors in 2024.”
Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA, said: “We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship. The Capital Solutions strategy aims to meet the increasing demand for various forms of real estate credit by drawing on Cheyne’s expertise in the European real estate lending market. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital.”
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About Cheyne Real Estate
Founded in 2000, Cheyne Capital is one of Europe’s leading alternative investment managers and is headquartered in London. With an investment philosophy grounded in rigorous fundamental analysis, the firm’s areas of expertise are Real Estate, Strategic Value Credit, Corporate Credit, Equity Alternatives and Multi-Strategy Solutions.
Real Estate investments account for approximately half of Cheyne’s $11 billion of AUM. Cheyne has provided financing solutions for real estate since 2009 across direct real estate lending, securitised European real estate debt and selective special situations, including impact real estate investments in affordable and specialist housing. In real estate lending, Cheyne seeks to provide specialised non-bank loans to borrowers in select European markets, with a flexible approach that enables it to invest across the capital structure. Its relationships with borrowers are facilitated by a localised presence in Berlin, Madrid, Paris and London.
Cheyne Capital Management (U.K.) LLP is authorised and regulated in the U.K. by the Financial Conduct Authority and registered as an Investment Adviser in the U.S. by the Securities and Exchange Commission. Cheyne Capital SMC Limited is an Alternative Investment Fund Manager authorised by the Central Bank of Ireland under the European Union (Alternative Investment Fund Managers) Regulations 2013. Cheyne is a signatory to the United Nations-supported Principles for Responsible Investment (PRI), a member of the Alternative Investment Management Association (AIMA), a founding member of the Alternative Credit Council and one of the initial signatories to the Standards Board for Alternative Investments (SBAI).
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Cheyne Capital Prosek Partners (Pro-Cheyneuk@prosek.com)
