Real Estate Debt Management

UK Commercial Real Estate Lending

Real Estate Debt Management (REDM) arranges loan facilities secured by UK commercial real estate, mainly in the industrial, logistics, office, healthcare, retail and leisure sectors.

As well as loans secured by investment property, we also provide loans for pre-let 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 each loan.

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

Our current lending parameters

Maximum LTV 70%
Loan type Senior ranking
Term 1-30 years
Margin

2.0%-3.5% for investment loans and 3.5%-4.5% for development loans

Arrangement fee 1%-1.5%
Loan Purpose Investment or development
Properties Individual or portfolio 

 

Case Studies

  • Industrial investment loan

    A five year, £32m, fixed rate investment loan to a UK Special Purpose Vehicle.

    Secured by a 400-acre industrial and distribution site, in the North West.

    Over 150 tenants across 200 units.

    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, £10m, floating rate investment loan – the third loan we have provided to this asset manager.

    Secured against a well-located central Manchester property which has been newly refurbished and contains amenities including a business lounge, roof terrace and gym.

    Containing 22 office suites (700 – 2,100 sq. ft) and two retail units, the property has proven popular due to the high quality fit out and flexible working space.

    Lettings have been secured through COVID-19 with a good diversity of income from a broad mix of tenants.

  • 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 mixed-use properties, (industrial, office and retail) in North Yorkshire.

    25 different tenants across 16 properties anchored by a strong covenant under a long-term lease.

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

Why choose REDM?

REDM invests in and manages portfolios of CRE loans of over £1bn.

We have a highly experienced, entrepreneurial team which has extensive experience of structuring commercial real estate loans and analysing risk.

We are relationship-led with short reporting lines and a bespoke investment committee structure, 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 offices in Wilmslow (Cheshire) and London.

New investors

REDM manages portfolios of UK commercial 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 offer an extensive commercial real estate loan service which includes origination across the UK, investment analysis, loan structuring, investment committee process, legal completion and ongoing monitoring. We also provide comprehensive reporting to investors.

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

Ian Walker
Managing Director
Ros Harper
Managing Director
Simon Osmond
Director

For further information on our services