Waypark launches lending platform with £450m funding
A joint venture between Waypoint Asset Management and Park Lake Capital has raised £450m of institutional funding for a new real estate lending platform.
The London-based jv, called Waypark Capital, will use the funding to provide small and middle-market commercial property loans in the UK. These will range between £2m and £20m, with LTV ratios of up to 75% for acquisitions, refinancing, and asset upgrades.
The lender said its pipeline already exceeds £150m of loans, and that it is on track to close a number of transactions next month.
A joint venture between Waypoint Asset Management and Park Lake Capital has raised £450m of institutional funding for a new real estate lending platform.
The London-based jv, called Waypark Capital, will use the funding to provide small and middle-market commercial property loans in the UK. These will range between £2m and £20m, with LTV ratios of up to 75% for acquisitions, refinancing, and asset upgrades.
The lender said its pipeline already exceeds £150m of loans, and that it is on track to close a number of transactions next month.
London-based, credit-focused company Aeon Investments has signed a loan origination agreement with Waypark, as part of its mid-market lending strategy. Aeon is aiming to build loan portfolios in the UK to meet “increasing interest” from institutional investors in real estate vehicles.
Nicolas Vocos, chief executive of Waypark Capital, said: “Banks’ dominance of the UK real estate credit market has decreased considerably over the past decade. We expect this trend to continue as the pandemic disruption contributes to tighter regulation and lowers risk tolerance from traditional providers of real estate finance.
“Our lending platform is uniquely positioned to capitalise on this opportunity, particularly as the real estate industry looks to a net-zero carbon future that would require significant funding to upgrade the UK’s commercial property stockpile to meet current and future requirements.”
Oumar Diallo, chief executive of Aeon Investments, said: “This agreement further demonstrates our belief in the commercial real estate sector, despite prevailing headwinds due to rising rate, surging inflation, and looming recessionary outlook. We firmly believe that rigorous asset selection and loans with prudent LTVs and conservative debt coverage ratios will ensure CRE debt remains an asset class with sound risk/reward ratios.
“There are a growing number of attractive corporate real estate funding opportunities and a growing appetite from institutional investors to increase their exposure to this market.”
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