Schroders Capital’s Private Debt & Credit Alternatives (PDCA) team announces the close of a £23.3 million senior construction loan for the development of 133 townhouses in Denmark’s Triangle Region. The properties will reportedly be delivered by an experienced local developer with a track record in the region and on similar residential schemes.
The construction loan, which is reportedly being shared equally by way of co-investment with a fund that is managed by Kinnerton Credit Management A/S, marks the second commercial real estate (CRE) loan in Denmark “sourced by Kinnerton for Schroders Capital’s PDCA strategies that incorporate pan-European Real Estate Debt.”
All residential units in the project are set to be “certified gold by the German Sustainable Building Council (DGNB – Deutsche Gesellschaft für Nachhaltiges Bauen) and the financing is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation.”
The Triangle Region, one of Denmark’s regions comprising the municipalities of Billund, Fredericia, Kolding, Middelfart, Vejen, Vejle, and Haderslev, is characterised by steady fundamentals, including “population growth and high demand for modern, sustainable homes.”
This loan highlights the firm’s aim to expand its European CRE debt lending operations across the Nordics, Germany, and the Netherlands, where Schroders Capital maintains a presence in real estate. This close adds to the PDCA team’s global CRE debt portfolio which “includes over $2.4 billion in CRE loans.”
Daniel Younis, Head of European Real Estate Debt Investments, PDCA, Schroders Capital said that with a lack of financing from banking institutions coupled with a demand for affordable homes, alternative lenders “are able to plug the gap.”
Younis added that there is a pipeline of multi-family opportunities in Denmark in particular, providing access to areas with employment growth, backed by fundamentals.
The transaction exemplifies Schroders Capital’s approach of working cooperatively with various borrowers and generating risk-adjusted returns secured against “high-quality, sustainable properties.”
Schroders Capital’s PDCA was formed back in 2023 via a combination of our businesses across real estate debt, infrastructure debt, liquid alternative credit, and specialty finance.
The division, which is being co-led by Michelle Russell-Dowe and Stephan Ruoff, now reportedly oversees$38.5 billion in AuM with over 100 investment professionals.