Cynergy Bank and Delancey have established a strategic lending partnership and are targeting up to £1.5bn of property-related debt transactions over the next three years.
The non-exclusive, multi-year programmatic joint venture will focus on originating and executing senior and whole loans ranging from £10m to £80m. These loans will be funded either solely by Cynergy Bank or jointly by both parties.
Delancey will lead sourcing and structuring activities through its network of sponsors. A pipeline of opportunities has already been identified in the office, industrial, retail, living, mixed-use, self-storage and healthcare sectors.
Martin Farinola, head of real estate debt strategies at Delancey, said: “This is a further example of the diverse capital solutions we can offer to investors and borrowers at a time when they are seeking new ways to access attractive risk-adjusted opportunities across the capital stack. This partnership will accelerate the scaling of our debt platform while providing Cynergy with a new route into the UK real estate debt market.
“With our active deal flow, extensive sponsor network, and comprehensive equity underwriting approach, we are confident in delivering high-quality loans at scale that meet Cynergy Bank’s underwriting standards and growth of Delancey’s investment products.”
Ravi Sidhoo, managing director at Cynergy Bank, added: “As one of the UK’s longest established independent private real estate managers, Delancey has an unrivalled network that will drive origination, unlocking new opportunities for Cynergy Bank within the UK real estate market. With over £55bn of UK real estate loans maturing in the near term, we believe there is a compelling lending opportunity – driven by traditional banks retrenching, re-based equity values, anticipated interest rate cuts, and recovering transaction volumes.”
Ian Guthrie, senior managing director at JLL, said: “This arrangement is the first lending partnership of its type involving a UK challenger bank and a non-bank lender and follows an extensive process, led by JLL on behalf of Cynergy Bank, to identify a strategic partner closely aligned to the banks strategic objectives. We’re confident this collaboration will deliver both significant value and innovative financing solutions that meet the diverse needs of today’s real estate investors, developers and operators.”
