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Real Estate Debt Management

The Real Estate Debt Management team (REDM) arranges loan facilities secured mainly by UK Commercial Real Estate in the industrial, logistics, office, healthcare, retail and leisure sectors, with some residential ground rent, social and student housing exposure.

Who we are

REDM originates, structures and manages portfolios of Commercial Real Estate loans of over £1bn.

We have a highly experienced, entrepreneurial team which has extensive experience of structuring commercial and residential (in the sectors mentioned above) real estate loans and analysing risk.

We are relationship-led with short reporting lines and a bespoke Investment Committee structure, comprising senior Rothschild & Co bankers and independent advisors, ensuring that decisions are made in a timely manner.

We pro-actively manage the completion process with the same experienced individuals retaining client responsibility throughout the relationship.

We have a strong regional focus and UK network, with teams in Wilmslow (Cheshire), London and Manchester.

Please see further below or for more information, contact us.

What we do

As well as loans secured by investment property, we also provide loans for pre-let and/or pre-sold development schemes.

Loans can be provided to individuals, special purpose vehicles, trusts and companies.

Loans are funded on a fixed or floating interest rate basis by two large UK insurance companies, for whom we act as investment manager.

Rothschild & Co Bank International also co-lends part of most loans.

Typical loan sizes range from £5m to £35m, but with flexibility depending on the transaction.

Lending parameters
Maximum LTV 65%
Loan type Senior ranking
Term 1-30 years
Margin

2.75%-3.75% for investment loans and 3.75%-4.75% for development loans
Arrangement fee 1%-1.5%
Loan Purpose Investment or development
Properties Individual or portfolio 
Meet the team

ian walker new 200x200.jpgIan Walker
Managing Director

Simon Osmond
Director

Julia Moore
Director

Stephen Pye
Director

Mary-Rose Noble
Assistant Director

Charlotte Pearce
Assistant Director

Elizabeth Sutherst
Assistant Director

Tracy Walmsley
Assistant Director

Harvey Wilson
Analyst

George Sealy
Analyst

Lewis Derbyshire 200x200.jpgLewis Derbyshire
Analyst

Samantha Rollason 200x200.jpgSamantha Rollason
Consultant

David Lathwood 200x200.jpgDavid Lathwood
Consultant

New investor mandates

REDM originates, structures and manages portfolios of UK commercial and residential real estate loans for third party institutional investors who use the asset class to match both fixed and floating and short and long term liabilities. Investment policies are tailored to meet specific investor requirements and can either be on a discretionary or non-discretionary basis, depending on investor preference.

We provide an extensive service to our investors which includes origination across the UK, investment analysis, loan structuring, Investment Committee process, legal completion, ongoing monitoring and comprehensive reporting.

We have the ability to co-lend alongside our investors in each loan to ensure interests are aligned.

Please contact us if you would like to discuss any aspect of the above in more detail.

 

Case Studies

  • Industrial investment loan

    A £42m loan facility comprising a £34m fixed rate investment loan and £8m floating rate development loan. This five-year facility has recently been extended for a further five years.
    Secured by a 400-acre industrial and distribution site, in the North West, with development loan funding a pre-let warehouse.

    Over 215 tenants across the portfolio.

    The loan has supported development on site, including new industrial and office units and a solar farm with the borrower aiming to become self-sufficient from green energy.

  • Office investment loan

    A five year, £19.5m, floating rate investment loan – the third loan we have provided to this asset manager.

    Secured against three, well-located, properties with two in central Manchester and one in central Leeds. All have been newly refurbished and contain amenities including business lounges, roof terraces and gyms.

    Containing 41 office suites and four retail units, the properties have proven popular due to the high-quality fit outs and flexible working space.

    The loan has been structured to allow the release of further funds as units which were vacant at completion have been let.

  • Mixed-use investment loan

    A ten year, £20m, fixed rate investment loan to an experienced borrower with whom we have a long-standing relationship.

    Secured by a portfolio of 30 mixed-use properties (industrial, office and retail) in North Yorkshire, which are let to a wide range of tenants with low concentration.

    The loan diversified the borrower’s funding and provided working capital for further investment and future property acquisitions.

  • Image of a social housing building by REDM

    Social Housing Investment Loan

    A 19 year, £19.4m, fixed rate investment loan to a registered provider of social housing, drawn in stages as the properties were acquired. The facility is secured by 160 supported housing units located across London which provide accommodation to rough sleepers and victims of domestic abuse. The acquisitions comprise one and two bedroom flats and houses which were financed by a combination of: (i) the above facility; (ii) grant funding awarded by the Greater London Authority; and (iii) borrower equity.

For further information on our services

Contact us at redm@rothschildandco.com

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