Cheyne Capital has secured a commitment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for the ninth vintage of the Cheyne Real Estate Credit Holdings (CRECH).
The commitment brings ADIA’s subsidiary’s total commitment to CRECH’s capital solutions strategy to £650m.
The capital solutions strategy continues CRECH’s core focus on senior lending against European real estate and, in addition, provides comprehensive solutions across the capital structure, including subordinated debt, hybrid credit and commercial mortgage-backed securities (CMBS).
Ravi Stickney, managing partner and CIO of Cheyne Real Estate, said: “The capital solutions strategy aims to help the European real estate industry transition away from increasingly obsolete assets supported by low interest rates and towards productive, sustainable assets for the long term. With an enormous pipeline of future investments requiring funding, we look forward to continuing to address this need as we open the strategy up to other investors in 2024.”
Mohamed Al Qubaisi, executive director of the real estate department at ADIA, added: “We have invested with Cheyne for a number of years and welcome the opportunity to grow our relationship. The capital solutions strategy aims to meet the increasing demand for various forms of real estate credit by drawing on Cheyne’s expertise in the European real estate lending market. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital.”
