Tuesday, January 31, 2023

Cheyne Capital real estate credit raises $3bn since pandemic

Real estate credit units managed by Cheyne Capital have raised £2.5bn ($3.1bn) since the pandemic, underlining investor interest in the sector.

The London-based firm, which has tilted towards private credit and real estate since the financial crisis, has deployed over £2bn ($2.5bn) in real estate credit loans this year alone.

Cheyne announced the fundraising into its sixth and seventh real estate credit funds, and some separately managed accounts, on Tuesday.

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The $10bn manager’s strategy makes loans, typically senior, to large established borrowers in the UK and Western Europe for real estate assets expected to increase in value and de-risk the loans over time.

The programme’s recently announced loans include over €200m to the KSL Capital-owned Beaumier hotel group, £219m to Riverstone for its Kensington later living scheme and £187m to LaSalle Investment Management for the acquisition and construction of a Regal London mixed-use development in Wembley.

Cheyne’s 38-strong real estate team is also developing a scoring-based framework which allows them to analyse and score ESG factors in relation to real estate lending.

“In the current environment of global uncertainty and market volatility, we believe we are well-placed to continue delivering consistent returns and protecting our investors’ capital,” said Ravi Stickney, managing partner and CIO of Cheyne Real Estate.

Now listen to Cheyne co-founder and president Stuart Fiertz on the AFI podcast