BentallGreenOak raises £1.4bn for UK real estate debt fund

BentallGreenOak raises £1.4bn for UK real estate debt fund

BentallGreenOak has announced the final close of its third UK Secured Lending Fund with a total of £1.433 billion in commitments from over 25 global institutional investors.

The fund exceeded its initial target of £1 billion, making it one of the largest European fundraises for a debt strategy entirely focused on the UK.

“We are delighted to see such support for our latest debt strategy,” said Jim Blakemore, Managing Partner and Global Head of Debt at BentallGreenOak. “Given the current challenging market environment, the demand for debt solutions will increase and it will be more important than ever to work with experienced lenders who are capable of navigating the volatility. The successful final closing, which exceeded our target, is a testament to our team’s consistency and commitment to performance for our clients.”

This is BentallGreenOak’s third fund for UK Secured Lending and the sixth fund in the firm’s broader European Debt strategy, which has invested over US$5 billion to date.

“Non-bank lenders such as ourselves have been well positioned to thrive in the post-pandemic world, where our creativity and flexibility are particularly valuable. With a cautious and selective approach we continue to invest and are looking at a healthy pipeline of attractive opportunities across UK and Europe. BGO is well positioned to lend on opportunities across the UK and Continental Europe as more properties require capital to be repositioned to be competitive in this environment from an ESG and efficiency perspective,” added Manja Stueck, Managing Partner, BentallGreenOak.

The strategy will provide direct lending across a range of real estate asset classes, including office, logistics, and multi-family residential property, driven by lending on transitional assets where the loan supports the sponsor’s business plan to create value. It will focus on the mid-market but has the ability to provide large-cap loans.

BentallGreenOak’s in-house team asset manages each investment; a critical aspect to driving investment performance and exceptional client service. Consistent with BentallGreenOak’s investment approach, environmental, social and governance (ESG) considerations are a major focus and will be integrated throughout the lending process and asset management of the strategy.