Whitewood Group is looking to raise 拢125m (鈧�175m) through an initial public offering (IPO) for a Benelux real estate debt strategy.
The private investment manager, wh said it will offer secured, profit-sharing loans on office property markets in the region.
The company said it has a 鈧�245m pipeline of potential investments.
Whitewood managing director, Fr茅d茅ric Van der Planken, said there is a 鈥漵ignificant opportunity鈥� for investors to invest in commercial office properties at a discount with 鈥渓imited competition鈥� and limited local finance for refinancing and new development.
鈥滻ncumbent lenders are over-extended and over-leveraged and there is significant pressure on their balance sheets,鈥� Van der Planken said.
Banks in the Belgo-Dutch markets will continue to lend, but at lower loan to value ratios and only on conservative transactions, the firm said.
Whitewood said the volume of non-performing loans needing to be offloaded in the coming years will create financing opportunities from greater movement in the secondary real estate debt market.
The firm, which has 鈧�380m of assets under management, said it will offer two-to-five-year loans up to the 鈥漛rick value鈥� of properties rather than to full market value.
An annual net dividend yield of 5.75% is being targeted for the strategy, with long-term returns of up to 15%.
Polarisation of primary and secondary stock, and greater leasing activity were behind the firm鈥檚 decision to enter the sector, it said.
