Renshaw Bay, the fixed income-focussed alternative credit investment manager, has been awarded a £350m UK debt mandate for deployment across high yielding, fixed-rate senior loans from Guardian Financial Services.
CoStar News understands that Renshaw Bay saw off competition from almost 20 separate bidders for the segregated mandate, including from Pricoa, M&& Investments, AXA Real Estate and CBRE.
The mandate will diversify Guardian’s fixed income investments – in its first allocation to real estate debt in its 200-year history – and provide a higher yield by investing in fixed-rate senior loans with maturities of between five to 15 years.
For the segregated account, Renshaw Bay will write loans that will be secured against UK office, retail and industrial properties.
Jonathan Yates, chief executive of Guardian Financial Services, said: “Commercial real estate debt is an attractive new source of fixed income for us which offers enhanced yields and risk adjusted returns appropriate for our long-dated liabilities. We are pleased that we have been able to capitalise on this opportunity with Renshaw Bay.”
Jon Rickert, head of real estate finance at Renshaw Bay, said: “We are delighted to have been awarded this mandate to invest in UK commercial real estate loans for Guardian. We continue to see these assets as a large and enduring opportunity for institutional investors and are excited to build and manage Guardian’s portfolio.”
Renshaw Bay has now closed six whole loans worth over £250m in the first six months of this year and expects, with those loans currently in due dilligence, to close an annual total of £500m by year end, for both its co-mingled high yield fund and for the Guardian segregated mandate.
Guardian was acquired by Cinven in 2011, and has a track record in acquiring books of business in the life assurance sector in both the UK and the rest of Europe. It currently manages on behalf of over 600,000 customers.
Renshaw Bay is an independent asset management firm focused on investment opportunities resulting from dislocations and structural changes in global capital markets within commercial real estate finance and structured credit.
Renshaw Bay was established by Bill Winters, the former co-CEO of J.P. Morgan’s Investment Bank, in partnership with Reinet Investments S.C.A, a Luxembourg-listed investment vehicle chaired by Johann Rupert, and RIT Capital Partners plc, a London-listed investment trust chaired by Lord Jacob Rothschild.