This strategy invests in commercial mortgages secured against global real estate assets, with interest typically paid by rental income from the underlying properties.
Junior or mezzanine debt, typically sub-investment grade capital, offers a higher risk premium than senior loans while still being backed by quality underlying real estate assets.
Junior real estate loans have the potential to achieve attractive risk-adjusted returns and could offer a persuasive alternative to direct real estate investment at times of uncertainty over property values, offering similar returns with embedded downside protection.
Since 2008, our specialist team has invested across the capital structure, and originates either whole loans or specific mezzanine traches, enabling clients access to the higher yielding segments of the capital structure. Our exacting underwriting standards and carefully negotiated investor safeguards are designed to offer significant downside protection against potential deterioration in property fundamentals.