ADIA Goes Big On Real Estate Lending
One of the world’s biggest sovereign wealth funds is putting $400M (£310M) into a platform that will provide loans to European living assets.
The Abu Dhabi Investment Authority has provided $400M to Arrow Global, a European real estate credit and investment specialist, its second commitment to a real estate lending strategy this year.
Arrow provides senior and junior debt to European assets related to residential sectors through various platforms, including UK lender Maslow Capital. It also has platforms in Ireland, Portugal and the Netherlands.
Arrow’s recent deals include a £29M bridge loan to refinance a recently completed 35-flat residential development in London, a £13M redevelopment loan for the conversion of a former police station in London into a 29-unit residential development, and a £129M loan to build a 477-apartment complex in Manchester.
It provided a total of €1.2B of debt in 2023, which has financed the development of more than 18,000 units spanning more than 11M SF, the company said.
ADIA was already an investor in Arrow’s opportunistic credit fund, the company said.
“Arrow Global’s European Real Estate Lending strategy is well-aligned with the market’s shift toward more flexible and reliable real estate financing solutions, and Arrow’s strong track record makes it an attractive investment opportunity,” ADIA Executive Director of Real Estate Mohamed Al Qubaisi said in a statement.
In March, ADIA said it had provided capital to Cheyne Capital’s ninth Cheyne Real Estate Credit Holdings fund. The commitment took the total it has invested in Cheyne’s credit funds to £650M, Cheyne said.
These funds invest in senior and junior debt. Cheyne’s recent deals include a £525M senior loan secured against three London hotels owned by Fattal Hotel Group and the provision of finance to a £400M student scheme being built by Regal in Wembley, north London.
“The capital solutions strategy aims to help the European real estate industry transition away from increasingly obsolete assets supported by low interest rates and towards productive, sustainable assets for the long term,” Cheyne Real Estate Managing Partner and Chief Investment Officer Ravi Stickney said in the statement.
ADIA had about $968B of assets under management as of March. More than $50B of that is in real estate, making it one of the world's largest direct owners of real estate.
