Europa Capital launches £100m debt vehicle

Tanya Ashreena

Europa Capital

Europa Capital has launched a UK-focused debt vehicle with commitments of £100m, Property Week can reveal.

The vehicle is structured as a club and will follow the same investment strategy of the Europa Mezzanine Fund. It will provide both whole loans and mezzanine financing up to 85% loan to value secured against UK commercial real estate with a focus on the regions.

Following the success of the Europa Mezzanine Fund, which closed in December 2016, Europa said it intended to bring to market various UK products in order tofurther grow its debt platform.

The company recently hired David Hardcastle and Chris Swarbrick as origination consultants to broaden its network in the UK regional market. Hardcastle, who is based in Leeds and Swarbrick, based in Manchester, both earlier worked in Barclays, where they were responsible for real estate lending across the north of England.

Michael Birch, chief executive of the Europa Capital’s UK debt subsidiary said: “Over the last four years we have provided around £200m of loans secured against over 6m sq ft of property. During this period, the UK regional debt market has undergone significant changes due to increased regulation imposed after the global financial crisis and further tightening post-Brexit. As a result, there are now a limited number of senior lenders who are prepared to finance transactions with more complex portfolios, with multiple properties and tenants, located across the UK.”

Tim Turnbull, a partner at Europa Capital added: “Europa Capital have built a successful debt platform by providing suitable and flexible debt solutions to these undersupplied markets and will now further expand the product range by offering a combination of whole loans and mezzanine debt.”

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