Our approach

We provide loans to a full spectrum of clients from REITS and institutional funds to family offices, private property companies, developers and opportunity funds. The debt issued comes in various maturities, generally matching the nature of the lease attaching to the underlying property. These assets can offer attractive diversification away from corporate bonds, but with the security of recourse to the underlying property and covenant protection for lenders.

Benefits

Real estate finance can offer attractive diversification from listed credit, with underlying security.

Cash flow

Helpful for institutional investors with defined cash-flow criteria.

Diversification

Historical performance shows diversification benefits versus liquid market opportunities.

Illiquidity premia

The private nature of the assets and networks needed to access them can contribute to premia over comparable liquid credits.

Security

High quality collateral contributes to improved recovery rates in the event of default.

Capital treatment

The relative security of assets can be reflected in favourable capital treatment for insurers under Solvency II regulations.

Key risks

Investment risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Investors may not get back the original amount invested.

Illiquidity risk

Certain assets held in the fund could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Complexity risk

Counterparties can be diverse, so successful investment requires appropriate credit analysis and the expertise to understand investment risks.

Our first loans were made in 1984. Today we are a leading provider of long-dated, fixed rate commercial real estate mortgages, with an end-to-end loan origination and management platform.
Gregor Bamert, Head of Real Estate Finance

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