We make new loans or acquire existing debt which is underpinned by quality real estate and in place cashflow.
Before 2008, bank lenders dominated commercial real estate due to the Basel framework’s favourable regulatory capital environment. Following the global financial crisis, Europe’s CRE lending landscape changed dramatically as high-leverage CRE lending became very expensive for banks under the new Basel II regulatory capital rules.
Such regulatory activity forced the banks to retrench, resulting in a significant reduction in both the amount of debt and the level of leverage available for European Commercial real estate, creating a funding gap that alternative lenders filled upon entering the market.
Capitalising on this lack of funding, DRC Capital maintains an opportunistic approach to debt investing focused on high quality commercial real estate assets. The investment focus consists of the following:
- Loans: Senior, Junior and Mezzanine
- Geographies: Western Europe
- Asset Classes: Commercial real estate, mainly offices, retail and hotels