Allocation Profile

We have proven know-how in our target markets and will invest initially in the UK and Germany.

Real estate is today a safer asset when compared to 2008, with low loan-to-value ratios (LTV) becoming a preferred collateral for loans. High real-term bridge lending rates exist today.

Bridge and mezzanine are normally secured by a second lien and sometimes first. Current lending position has improved, being safer due:

  • Senior loans are currently given with smaller LTV’s, giving bridge and mezzanine a bigger portion of the loan to finance
  • Such bigger portion, also brings additional guarantees, because a bigger portion of the equity will help cover the bridge or mezzanine loan.
  • Finally, such change in LTV’s by senior loans, gives an increased value added to bridge and mezzanine financing, providing for additional Alpha to investors.
  • Real estate valuations are now lower, than in 2007, providing additional safety on the collateral.