June 02, Europe: French property developer Altarea, and alternative investment management group Tikehau Capital, have collaborated to launch a real estate credit platform in Europe, targeting €1bn with €200m already being cured from both parties in order to ensure strong continuity of interest.
This strategy aims at bridging an anticipated liquidity gap in the real estate market across a series of property types that will include office, retail, industrial, residential, logistic and hospitality.
The platform focuses on addressing a broad array of situations by virtue of flexible capital solutions to real estate sponsors and corporates, with a primary focus on asset-backed and traditional corporate financings, majorly through junior mezzanine or whole loan debt instruments.
This platform will leverage Tikehau’s and Altarea’s expertise in private credit and real estate asset classes, providing investors with in-depth insights into the groups’ strong networks to identify the most attractive investment opportunities. Moreover, both companies have successful experiences investing together in similar strategies.
As per the official press release of the company, Co-founder of Tikehau Capital, Antoine Flamarion said, “We are excited to launch our Real Estate Credit platform as we see a number of upcoming potential opportunities throughout Europe. Our company has a strong track record in real estate and private credit, and we believe that this platform will offer investors potential attractive returns while providing vital financing solutions for European property owners, particularly in an environment where interest rates are rising sharply and liquidity dries up.”
Flamarion further added that their company believes there is a strong momentum to initiate this strategy in the current business scenario. Real Estate companies and housing sponsors are still adjusting to the new environment with higher interest rates, complex refinancing and progressive price discovery on asset values across all asset classes.
Alain Taravella, Founder of Altarea while stating the importance of this alliance said, “Altarea brings a wide range of expertise in the real estate sector from an equity perspective as an investor and a developer, providing deep insight into project risk assessment and the ability to manage complex situations.” “Tikehau already has an impressive track record in real estate credit through its special opportunities franchise and has completed 15 investments till date worth €500m,’’ he further added.
The investment process will operate under the guidance of Maxime Laurent-Bellue, Head of Tactical Strategies, Tikehau Capital and will be a major development in Europe's real estate industry. This collaboration will further widen the country’s footprint in the global property value chain and will help to provide real tech investors with in-depth insights into Europe’s housing market to identify the most attractive investment opportunities.