Rutley Capital Partners are the real estate investment management arm of the Knight Frank property group. The venture will focus on creating a new investment vehicle to purchase senior debt secured on portfolios of prime commercial properties in the UK and Europe. With senior commercial property debt trading at deep discounts, the partners feel that the combination of skills provided by TwentyFour and Rutley Capital Partners are essential at this stage in the cycle.
Mark Holman, managing partner at TwentyFour, says “with AAA rated commercial mortgage debt trading at significant discounts to face value, the opportunity has probably never been so compelling. We have been working with the partners at Rutley for 6 months now and are convinced that the partnership will provide clients with the optimal opportunity in our sector. Understanding both what the physical property markets are doing as well as the specialised debt markets will ensure that we cover all angles in making our investment decisions. As far as I am aware this is the first venture of its kind, but work is well underway and we hope to be commencing a road show for a finalised product by October”.
The vehicle will aim to deliver returns of approximately 10% per annum over the medium term, although they acknowledge that with many markets normalising it is possible that returns come in quicker and higher than expected, in which case the investors would be offered an early redemption opportunity.
For further information about the venture or fund, please contact
Tel: +44 (0)20 7015 8900