Altarea and Tikehau Capital are teaming up to launch a real estate credit platform targeting €1 billion ($1.1 billion) in assets.
The groups have already committed €200 million ($215 million) themselves to the platform. The fund’s strategy is to bridge the liquidity gap in the market across property types, including office, retail, industrial, residential, logistic and hospitality. The primary focus is on asset-backed and traditional corporate financings, notably through junior mezzanine or whole loan debt instruments.
“We are excited to launch our Real Estate Credit platform as we see a number of upcoming potential attractive opportunities throughout Europe,” said Antoine Flamarion, co-founder of Tikehau Capital. “Tikehau Capital 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 much-needed financing solutions for European property owners and developers, in particular in an environment where interest rates are rising sharply and liquidity dries up.”
Tikehau Capital, which manages €39.7 billion across private debt, real assets, private equity and capital markets, already has a solid track record in real estate credit through its special opportunities franchise and has completed 15 investments to date in the space, for a total of €500 million. The platform and investment process will be guided by Maxime Laurent-Bellue, head of Tactical Strategies at Tikehau Capital.
Altarea is a French leader in low-carbon urban transformation, with a comprehensive real estate offering to serve the city and its users.
“We believe there is a strong momentum to initiate this strategy today. Real estate companies and sponsors are still adjusting to the new environment with higher interest rates, more difficult refinancing ahead and progressive price discovery on asset values across all asset classes.” said Alain Taravella, executive chairman and founder of real estate firm Altarea. “Altarea brings a wealth of expertise in real estate from an equity perspective as an investor and a developer, providing deep insight into project risk assessment and the capacity to manage complex situations.”
