Tikehau Capital has joined forces with Altarea to launch a European real estate credit platform, targeting €1bn with €200m already secured from both sponsors ensuring strong alignment of interest.
The fund’s strategy will aim at bridging an anticipated wide liquidity gap in the market across a range of property types that will potentially include office, retail, industrial, residential, logistic and hospitality.
The platform will address a broad array of situations by providing flexible capital solutions to real estate sponsors and corporates, with a primary focus on asset-backed and traditional corporate financings, notably through junior mezzanine or whole loan debt instruments.
“We are excited to launch our Real Estate Credit platform as we see a number of upcoming potential attractive opportunities throughout Europe,” said Antoine Flamarion, co-founder of Tikehau Capital.
“Tikehau Capital has a strong track record in real estate and private credit, and we believe that this platform will offer investors potential attractive returns while providing much-needed financing solutions for European property owners and developers, in particular in an environment where interest rates are rising sharply and liquidity dries up.”
“We believe there is a strong momentum to initiate this strategy today. Real Estate companies and sponsors are still adjusting to the new environment with higher interest rates, more difficult refinancing ahead and progressive price discovery on asset values across all asset classes.” said Alain Taravella, Executive Chairman and Founder of Altarea.
“Altarea brings a wealth of expertise in Real Estate from an equity perspective as an investor and a developer, providing deep insight into project risk assessment and the capacity to manage complex situations.”
Tikehau Capital already has a solid track record in real estate credit through its special opportunities franchise and has completed 15 investments to date in the space, for a total of c.€500m. The platform and investment process will be guided by Maxime Laurent-Bellue, Head of Tactical Strategies at Tikehau Capital.
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