Standard Life Investments has secured an internal £250m segregated mandate from its insurance company parent, Standard Life Assurance, to kick-start its UK senior debt lending programme.
Standard Life Investments recruited Deutsche Pfandbriefbank’s Neil Odom-Haslett as its head of commercial real estate lending in July and has plans to make funds available from next month.
David Paine, head of real estate, at Standard Life Investments, said: “The real estate lending market across Europe continues to evolve and has grown over the last few years.
“Interest from institutions in investing in real estate debt has increased significantly as they seek to diversify both their real estate and fixed income portfolios whilst maintaining and often enhancing yields and risk adjusted returns.
“This significant development is a natural expansion of our existing, long and well established Commercial Real Estate lending business in Canada, which has been in operation since the early 1960s.
“Our lending strategy will be underpinned by our leading in-house research process and follow our Focus on Change philosophy.
“By bringing Standard Life Investments’ robust and repeatable investment principles to bear on the real estate debt market, I am confident that we will be able to identify an attractive portfolio of suitable, profitable investment opportunities, which will provide clients with a stable and compelling risk-adjusted return.”
Neil, who has 31 years of experience in commercial real estate and corporate lending across a broad range of roles both in the UK and across other European markets, is responsible for all aspects of the Standard Life Investments commercial real estate lending platform.
Odom-Haslett, who worked in real estate credit risk management at PBB, will be responsible for all aspects of the Standard Life Investments commercial real estate lending platform with a focus initially on good quality senior secured loans in the UK.
CoStar News understand that Standard Life Investments’ business model will centre on deploying capital from the wider life insurance businesses annuity book, seeking to match its long-term pension liabilities.
The business model is similar to that employed by Legal & General Investment Management, which entered UK senior lending in early 2011.