Overlooked areas of the pan-European CRE debt market present pockets of value, and therefore provide an opportunity for better risk/return opportunities than the broader market. Direct loan origination enables control of all aspects of loan structuring and improved deal flow. A whole loan approach enables the creation of well-designed loan structures, with flexibility when building portfolios. Lending across a broad spectrum of CRE asset classes, locations, countries and loan types means the inherent idiosyncratic risks of individual properties, sectors and markets can be diffused and the risk/return profile of the portfolio can be tailored.
The team’s industry reputation and established relationships enable them to source a strong pipeline of potential deals. They conduct structured, in-depth due diligence to mitigate borrower and property risk, and to decide upon the optimal loan structure. New loans are subject to unanimous Investment Committee approval, and an efficient underwriting and loan negotiation process is then undertaken, focusing on efficient borrower communication to set mutually agreeable terms. Following loan execution, risk monitoring enables regular reporting and early intervention by the team, the Investment Committee and the Valuation Committee. By managing each incremental risk and holding a diversified portfolio of loans with conservative covenants, the team reduce aggregate portfolio risk.
Martin Farinola and Andrew Gordon jointly manage GAM’s real estate debt team. They have an average of 23 years’ experience managing the origination, underwriting, execution and management of CRE loans across a broad range of CRE collateral types.
The wider team comprises seven investment professionals who have relevant and varied CRE debt experience. The team is backed by an Investment Committee and a Valuation Committee who approve key decisions and assist in risk management.
The team joined GAM in October 2015 from Renshaw Bay, an alternative lending specialist manager. The success of their whole loan approach is proven by their strong track record. In 2015, the team was named UK CRE Debt Manager of the Year at the Professional Pension Investment Awards.
(i.e. buy and hold investments)
(4 - 5 years)