BrickVest, the London based online real estate investment platform, has announced the launch of its first commercial real estate debt investment opportunity in partnership with Venn Partners, a leading investment manager of real estate and other asset-backed loans.
The new partnership will give BrickVest users access to direct lending opportunities in the European commercial real estate market. Venn Partners’ experienced commercial real estate team, headed by Paul House, former Head of Citigroup’s Real Estate EMEA business, has originated over €1.5 billion in loans since commencing operations in January 2013.
This will be the first commercial real estate debt product available on the BrickVest platform, opening up more diversified options for BrickVest users. BrickVest’s online platform allows investors to invest in institutional grade commercial real estate investment opportunities from a low minimum investment amount with the ease of an online trading platform. These investment opportunities were previously only accessible to large institutions such as pension funds and insurance companies.
The investment strategy is focused on value-add loans in the mid-market where there is strong borrower demand and opportunities to generate attractive risk adjusted returns. The loans will be offered at up to 75% LTV and will include loan maturities for a period of six months to five years. Geographically, the focus is on UK and selective Western European commercial real estate markets.
The investment opportunity for UK commercial real estate remains attractive. With the banking sector battling with both increased regulatory requirements and reduced exposure to commercial real estate debt as an asset class, the market provides ongoing opportunities to find attractive risk adjusted loan investments. Exposure to the product also offers investors diversification against other fixed income assets.
Emmanuel Lumineau, CEO at BrickVest, commented: “We are very pleased to announce the launch of BrickVest’s first UK debt product, which will add to the diversity of investment opportunities already available on the platform. We aim to offer a wide range of real estate opportunities to our investors, and to break down the barriers in the industry to products previously only accessible only to the elite institutional investors.”
Paul House, Managing Partner of Venn Partners, commented: “Venn Partners already serves the investment needs of a diversified range of government entities and leading global institutions, and we are thrilled to be partnering with BrickVest to allow wider exposure to our product through their platform. Over the past few years we have built a strong team and track record through managing investment accounts for institutional investors, and have demonstrated that we have solid origination and underwriting skills, in-depth market knowledge and a robust infrastructure to successfully manage real estate debt investments. We are delighted to use our expertise and strong relationships in the UK and European commercial real estate debt markets to identify and capitalise on this favourable backdrop.”
BrickVest has unlocked the ability to combine unparalleled ease of access and transparency while providing an institutional-level investment platform with increased liquidity, supported by best-in-class reputable fund service providers.
The founding team has vast experience in both real estate and technology sectors and the company is backed by influential investors from real estate and finance industries.
The BrickVest electronic investment platform (“BrickVest”) allows investors to invest in institutional grade investment opportunities (“Product”) and actively manage their investment portfolio.
BrickVest is operated by BrickVest Markets Ltd, an Appointed Representative of BrickVest IM Ltd, which is authorised and regulated by the Financial Conduct Authority, registration number 737644. BrickVest Markets Ltd and BrickVest IM Ltd are 100% owned subsidiary of BrickVest Ltd, a limited company registered in England and Wales (No. 09294583), with its registered office at 74 Rivington Street, EC2A 3AY London.
Venn Partners is an investment manager of prime asset-backed direct lending businesses in Europe. Founded in 2009 and headquartered in London, its focus to date has covered commercial real estate finance and residential mortgage finance. Venn’s approach is to offer a stable and long-term lending alternative to banks, combining rigorous underwriting and investment management processes with access to maturity-matched funding channels and its lower cost business model. Venn led the first non-bank issuance of publicly placed Dutch RMBS since the financial crisis, has originated close to £1.23bn of commercial real estate debt, has been mandated by the UK government as the operator and manager of a £3.5 billion government guaranteed lending scheme for UK private rental housing, and recently has launched its own branded Dutch residential mortgage lending business in the Netherlands. In addition, it has developed a proprietary risk analytics system for asset-backed credit which it uses internally and licences to external asset managers on portfolios in excess of £2bn since inception. Venn is independently owned and invests alongside its institutional investors, ensuring alignment of interest. It has developed a team based ethos that values transparency, innovation, long-term partnerships and results.