PMM launches commercial real estate debt vehicle into UK and Irish markets
PMM Real Estate Finance 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 into the UK and Ireland – PMM Real Estate Finance (PMM REF).
With an initial £100m capital allocation, it has plans to deploy in excess of £500m of capital over the next three years.
PMM REF will provide senior and mezzanine finance for the acquisition and refinancing of commercial property, up to 80% LTV, for ticket sizes ranging from £5 million to £25 million, with efficient decision making and turnaround times. The company already has a healthy pipeline and is actively involved in a number of transactions across the UK and Ireland.
PMM REF’s investment strategy is focused on areas with strong borrower demand, where banks have retrenched and debt liquidity is weakest.
In launching the commercial real estate lender, Gareth Williams and Domhnall Gaffney have joined PMM REF as partners. They will lead the newly formed division and have over 30 years combined experience in the European commercial real estate loan market. Prior to joining PMM, Gareth and Domhnall were part of the management team at LNR Partners Europe, responsible for origination, structuring and execution of commercial real estate loans. They have previously held senior roles in the real estate finance divisions of large UK and European financial institutions.
PMM sees a great opportunity to offer liquidity to an underserviced part of the UK and Irish markets. We aim to underwrite real estate fundamentals rather than simply cash flows, which means loans can be structured to suit borrowers’ distinct business plans.
The opportunity for non-bank lenders in both markets is growing and access to debt remains challenging, especially for smaller debt amounts at higher leverage. Rather than just price, certainty of execution and high levels of customer service are becoming an increasingly important consideration.
Gareth Williams
PARTNER OF PMM REF
We are delighted that Gareth and Domhnall have joined PMM to launch the new lending platform. 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 Westion
PARTNER OF PMM GROUP
For further information please contact
Charlie Garnett
Reputation Inc.
+44 (0)20 7024 2609
cgarnett@reputation-inc.com
Stuart Young
PMM
+44 (20) 3937 8777
stuart.young@pmm-advisers.co.uk
