New commercial real estate lender enters Irish market to support underserviced sector
- PMM Group, the specialist real estate investment manager opens Dublin office.
- Newly created division aims to lend €500m over the next three years.
PMM Group, the specialist real estate investment manager, has today announced that it is launching a commercial real estate finance platform in Ireland – PMM Real Estate Finance (PMM REF). In a clear sign of its commitment to Ireland, the company is this week officially opening its Irish office in Merrion Street, Dublin 2.
With an initial €100m capital allocation, PMM REF has plans to deploy in excess of €500m of capital over the next three years across the Irish and UK markets. Its investment strategy is focused on areas with strong borrower demand, bridging the substantial liquidity gap left by Irish banks since the credit crisis, particularly for higher LTV’s.
PMM REF will provide senior and mezzanine finance for the acquisition and refinancing of commercial property, in loan seizes range from €5 million to €25 million, and offering up to 80% LTV. The company will offer a personal and tailored service to its borrowers, with efficient decision making and turnaround times. The newly formed division already has a healthy pipeline and is actively involved in a number of deals across the Ireland and the UK.
In launching its commercial real estate lending business, Domhnall Gaffney, who will lead the Irish operations, and Gareth Williams have joined as partners. They have over 30 years combined experience in the European commercial real estate loan market and, prior to joining PMM, were part of the management team at LNR Partners Europe, a pan European investment provider, responsible for origination, structuring and execution of commercial real estate loans. Both have previously held senior roles in the real estate finance divisions of large UK and European financial institutions.
PMM believes that the Irish commercial property market is entering a new phase, creating a requirement for more innovative and tailored lending solutions to address the needs of businesses seeking to finance their growth ambitions.
PMM sees a great opportunity to offer liquidity to an underserviced part of the Irish market. We aim to underwrite real estate fundamentals rather than simply cash flows, which means loans can be structured to suit borrowers’ distinct business plans. We believe our expertise and innovative approach to lending can bring something new to the Irish market at a time when debt finance from mainstream banks is scarce.
The opportunity for non-bank lenders in Ireland is growing and access to finance remains challenging for domestic borrowers, especially for smaller loan amounts at higher loan-to-value’s. Rather than just price, certainty of deal execution and high levels of customer service are becoming an increasingly important consideration.
DOMHNALL GAFFNEY
PARTNER OF PMM REF
We are delighted that Gareth and Domhnall have joined PMM. They bring a wealth of industry experience in originating, structuring and arranging commercial real estate finance loans. Their expertise will be invaluable to PMM as we continue to diversify our fund base into asset classes that complement our existing portfolio of investments.
MIKE WESTON
PARTNER OF PMM GROUP
For further information please contact
Paul Griffin
Reputation Inc.
+353 (1)4120517
pgriffin@reputation-inc.com
Stuart Young
PMM
+44 (20) 3937 8777
stuart.young@pmm-advisers.co.uk
