Fiera Real Estate UK has launched an open-ended pan-European real estate debt fund to invest in senior-secured, investment grade real estate debt loans.
The fund, which has already secured £100m in seed commitments, is targeting 10%+ net IRR and will invest across multiple sectors including residential, logistics, Grade A offices, leisure assets and hotels.
The initial focus of the fund will be the UK before it expands to “select European jurisdictions”. The fund is classified as Article 8 under the Sustainable Finance Disclosure Regulation and will promote “environmental and social characteristics through its approach to lending.
The co-fund heads are David Renshaw and Richard Howe who joined Fiera Real Estate in September 2022 from Cheyne Capital to set up and run the new pan-European real estate debt strategy.
Charles Allen, head of European real estate at Fiera Real Estate, said: “Private credit is an important addition to an institutional portfolio and the launch of our fund is a natural next step in the development of our product offering. With a team of recognised experts and excellent market coverage, we are well positioned to offer our clients strong risk adjusted returns across Europe at a very compelling time in the market cycle”.
Renshaw added: “The opportunity set within private real estate credit was already a compelling one, but rising interest rates coupled with mainstream lenders having to deal with heritage loan books and reducing credit supply means that the timing of our fund launch is opportune.
“We believe that private real estate credit will continue to grow and play an increasingly important role for both borrowers and investors within the European real estate landscape over the coming years and the launch of our fund is a testament to that belief.”
