Investors

The specialist fund manager is aiming to raise capital from pension funds and insurance companies to finance smaller-scale UK residential projects.

Europe’s real estate lending market was a difficult environment in which to do business last year. But some rose to the challenge

The firm, which launched the predecessor Generali Real Estate Debt Investment Fund in 2019, is targeting a €1bn raise.

According to the industry body’s latest investor survey, 62% expect to increase their allocations to credit vehicles in the next two years.

The Vancouver-headquartered manager has bought a stake in and committed up to £1bn to London-based Précis Capital Partners, which has rebranded.

To fight ‘active inertia,’ managers will need to adapt to changing client requirements,’ writes Chris Urwin, founder at advisory firm Real Global Advantage.

The financial services firm is advising investors to refrain from buying as property prices fully adjust.

The denominator effect is causing notable overexposure to property, according to the latest Allocations Monitor released this week by Hodes Weill and Cornell University’s Baker Program in Real Estate.

Loans coming to maturity in the next two years will be hard hit by interest rate rises and decreasing loan-to-values, respondents said.

The UK’s fast-changing political and economic landscape, however, could mean fundraising may slow down in the months ahead.