Abu Dhabi’s sovereign wealth fund has increased its commitment to a European real estate credit strategy, run by Cheyne Capital.
The Abu Dhabi Investment Authority (ADIA), which is estimated to have around $892bn (£699bn) in assets under management, has increased its investment in Chayne’s capital solutions strategy to £650m.
Cheyne Real Estate Credit Holdings, which is now on its ninth vintage, focuses on senior lending in European real estate, providing subordinated debt, hybrid credit and commercial mortgage-backed securities.
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Recent deals include the structuring of a £780m loan to Quintain for the refinancing of Wembley Park in London, alongside JP Morgan. The fund has also provided a £318m loan to Riverstone, backed by Goldman Sachs; and lent €250m to Bain Capital and Borio Mangiarotti for a housing development in Milan.
In total, the strategy provided loans worth more than £5bn in 2022 and 2023.
“The capital solutions strategy aims to help the European real estate industry transition away from increasingly obsolete assets supported by low interest rates and towards productive, sustainable assets for the long term. With an enormous pipeline of future investments requiring funding, we look forward to continuing to address this need as we open the strategy up to other investors in 2024,” said Ravi Stickney, managing partner and CIO of Cheyne Real Estate.
Mohamed Al Qubaisi, executive director of the real estate arm of ADIA, added: “The Capital Solutions strategy aims to meet the increasing demand for various forms of real estate credit by drawing on Cheyne’s expertise in the European real estate lending market. We see this as a compelling investment proposition in a market that is looking to private credit lenders for capital.”
Based in London, Cheyne Capital has $11bn in assets, half of which is in real estate.
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