- New "Capital Bay Europe Secured Whole Loan Fund" launches with a portfolio of residential and office projects in London and major UK cities The fund starts with 13 loans to various projects totalling almost EUR 400 million. Further loans with a volume of over EUR 500 million are in preparation. The planned fund volume is 1.5 billion euros Investments are possible from 10 million euros
- Der Fonds beginnt mit 13 Darlehen an verschiedenen Projekten in Höhe von fast 400 Mio. Euro. Weitere Darlehen mit einem Volumen von über 500 Mio. Euro sind in der Vorbereitung.
- Das geplante Fondsvolumen liegt bei 1,5 Mrd. Euro
- Beteiligung sind ab 10 Mio. Euro möglich
Capital Bay Group, an internationally integrated asset manager, investment fund manager and cross-sector property developer, is launching a new open-ended whole loan fund under Luxembourg law. The European umbrella fund "Capital Bay Europe Secured (CBES) Whole Loan Fund" will provide financing for property development and investment in Europe and is launching with an initial portfolio of loans in London and major UK cities. This portfolio has been launched by London-based specialist lender EVH Finance. EVH Finance will act as adviser to the fund. The fund's pipeline will expand the portfolio and finance projects in France, Germany and Italy. The target volume of the fund is EUR 1.5 billion. The internal rate of return (IRR) is expected to be between six and eight per cent. Institutional investors can participate in the fund from a minimum amount of EUR 10 million.
Rolf Engel, CFO of Capital Bay Group and CEO of Capital Bay Fund Management, says: "During the coronavirus pandemic, we have seen a decline in traditional bank financing, especially for project developments, due to market uncertainties and regulations such as Basel III. Project developers are increasingly turning to whole loan constructs from alternative lenders to finance their projects.
lenders to finance their projects. The CBES Whole Loan Fund meets this demand and provides the necessary capital. We are already experiencing very high demand for this investment opportunity."
Kreditgeber zur Finanzierung ihrer Projekte zurück. Der CBES Whole Loan Fund greift diese Nachfrage auf und stellt das notwendige Kapital zur Verfügung. Wir haben bereits jetzt eine sehr hohe Nachfrage nach dieser Investmentmöglichkeit.“
Victor Librae, CEO of EVH Finance, said: "Capital Bay is a highly successful global fund manager and we are very excited to continue working with them on the CBES Whole Loan Fund. We see significant financing opportunities across the UK and Europe and are excited to realise these through this vehicle and provide investors with attractive risk-adjusted returns. This is a significant milestone for our business, which was established in July 2020 and has already committed over €700m."
The first issue of the "CB Europe Secured Whole Loan Fund" took place on 3 August 2021. At the launch of the fund, various project developments and investments in the UK will be financed with a loan volume of almost EUR 400 million. The financing commitments range from EUR 13 million to EUR 79 million.
Traditionally, the financing of a project development is made up of equity and debt capital. As banks generally do not provide full financing due to regulatory requirements and project developers want to maintain their liquidity, there is a gap between equity and debt capital. This gap can be bridged by subordinated financing. In the case of a whole loan, senior debt, mezzanine capital and bridge are offered together by one financing partner and are always senior secured.