Europa launches UK debt vehicle

By James Buckley - Monday, September 11, 2017 13:31

Europa Capital has launched its latest UK debt vehicle, structured as a club with commitments of £100m.

The debt vehicle will follow the same investment strategy as the Europa Mezzanine Fund but will provide both whole loans and mezzanine financing up to 85% loan to value secured against UK commercial real estate with a focus on the regional markets. 

Following the Europa Mezzanine Fund, which closed in December 2016, Europa Capital intends to bring to market various UK debt products in order to further grow its debt platform in response to strong investor demand. 

Europa Capital has appointed David Hardcastle and Chris Swarbrick as origination consultants to broaden its network in the UK regional market. Hardcastle, who is based in Leeds and Swarbrick, based in Manchester, have joined from Barclays where they were responsible for real estate lending across the north of England 

Michael Birch, chief executive of the firm’s UK debt subsidiary said: “Over the last four years we have provided around £200m of loans secured against over 6m sq ft of property. During this period, the UK regional debt market has undergone significant changes due to increased regulation imposed after the GFC and further tightening post-Brexit. As a result, there are now a limited number of senior lenders who are prepared to finance transactions with more complex portfolios, with multiple properties and tenants, located across the UK.”

Tim Turnbull, Partner at Europa Capital said: “Europa Capital have built a successful debt platform by providing suitable and flexible debt solutions to these undersupplied markets and will now further expand the product range by offering a combination of whole loans and mezzanine debt.”

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