approach section
Senior Loan
- Top of the capital structure
- Typically, 0-65% loan-to-value (LTV)
Mezzanine Loan
- Below senior debt in the capital structure
- Typically, 65-85% loan-to-value (LTV)
Listed Credit
- Loans and mortgages are structured as bonds
- Listed on various exchanges
Special Situations & Preferred Equity
- Quasi equity, control investing, distressed debt
- Typically, 85% loan-to-value (LTV)
Direct Asset Investing
- Equity strategy
- Ownership of the asset at deal initiation
Asset Strategies
Cognisant that a challenging global macro backdrop is here to stay, we aim to focus on defensive entry points that can weather significant retrenchments in value and liquidity, whilst ensuring robust governance and control are in place.
We look for viable business plans with multiple exit paths and work with established, capable sponsors. We favour short to mid-term exit plans with significant value creation (“value-add” / “transitional”).
Core / Core+
- Stabilised, fully leased, cash-flowing assets in major core markets
Value Add
- Assets which alter the business plan to seek an increase in cash flow by improving or repositioning the asset
Development
- Ground up or transitional construction projects, typically with planning permission in place
Opportunistic
- Assets require significant enhancement to realise their potential. This strategy also includes strategic land opportunities
Real Estate Op-Co / Prop-Co Loan
- Loans secured by a real estate company, not by individual properties
Sectors
Our preference is for non-cyclical / thematic asset classes, with a focus on mid-market and affordable accommodation, offices, and light-industrial / logistics.
Residential
- Housebuilders
- Student Housing
- Multi-Family
- Apartments
- Build to Rent (PRS)
- Build to Sell
- Co-Living / Micro-Living
- Modular Homes
Student Housing
- Purpose-Built Developments
Industrial
- Logistics
- Light Industrial
Senior Living & Healthcare
- Retirement Homes
- Nursing Homes
- Specialist Care
Social & Affordable Housing
- Low Income Housing
- Mixed Tenure
- Supported Living (e.g. Learning Disability)
- Independent Living (e.g. Homes for the Elderly)
- Open Market Purchase
Hospitality
- Hotels
- Serviced Accommodation
- Leisure
Mixed Use
Developments which include a mix of
- Residential
- Office
- Retail
Office
- Across the UK and Europe
- London Value-Add
Investor Offerings
We manage the following investment products:
CLOSED ENDED CREDIT STRATEGIES
Real Estate Credit Holdings
- Focus on UK and developed European markets across all strategies: Core, Core+, Value-Add & Opportunistic
- Investments centred around short term catalysts to significant value addition and exit
- Robust loan structuring providing control
- Short duration Investments
- Capital preservation as a core overarching focus
- A compelling risk-return profile
2011
INCEPTION
USD 7BN
ASSETS UNDER MANAGEMENT
CUSTOMISED MANDATES
Separately Managed Accounts (SMAs) / Funds of One
- We work alongside our investors to tailor solutions which best meet the needs of the investor
- Customisable mandates in terms of investment strategy, objectives and restrictions
- May invest alongside other funds managed by Cheyne in the same underlying transactions
2020
INCEPTION
›Senior and Mezzanine Loans
›Listed Real Estate Bonds, such as Commercial Mortgage Backed Securities (CMBS)
LISTED PUBLIC VEHICLE INVESTING IN REAL ESTATE LOANS AND BONDS
Real Estate Credit Investments Ltd (RECI)
- Defensive credit exposure to the UK and European real estate markets
- Stable dividends
- Highly diversified portfolio
- Transparent and conservative leverage
2010
INCEPTION
USD 424MN
ASSETS UNDER MANAGEMENT
AREAS OF INVESTMENT:
›In-House Development
›Forward Funding
›Acquisition
A LONG TERM PROPOSITION FOR THE PROVISION OF HOUSING AND CARE IN THE UK
UK Impact Real Estate
- Long-term investments aimed at delivering a stable yield to investors
- Developing and investing in UK residential property aimed at delivering long-term impact for key demographics
- Investments range across general needs housing for key worker, affordable and social rent in addition to sheltered & supported accommodation, and senior care for the elderly
- Operated by quality counterparties and commercial organisations to provide best in class service
2014
INCEPTION
USD 249MN
ASSETS UNDER MANAGEMENT
INVESTMENT OPPORTUNITIES
Co-Investment / Adjacencies
- Cheyne sees compelling investment opportunities across the real estate capital structure, thanks to our presence in the market
- Typically for larger global investors interested in analysing deals which do not fit into Cheyne’s managed commingled funds or SMAs
- A particular transaction could be either too large for our funds to take 100% of the deal or not fit the investment strategy of our mandates
- In these instances, we are happy to engage with interested investors who are able to proceed on a co-invest basis