ADIA invests in Arrow Global’s European RE lending strategy
Arrow Global Group Capital Management has secured a $400 million commitment from a wholly-owned subsidiary of ADIA – the Abu Dhabi Investment Authority – for its European Real Estate Lending strategy.
“This agreement with ADIA to commit to our flagship European Real Estate Lending strategy comes at an ideal moment for living sector assets,” said Zachary Lewy, founder, CEO and chief investment officer, Arrow Global. “In a market that is looking to private credit lenders for capital, this is a prime opportunity to provide senior secured capital to borrowers delivering high-quality, liquid assets that are in short supply and high demand.”
The agreement expands the relationship between Arrow Global and ADIA, with an ADIA subsidiary also an existing investor in Arrow Global’s opportunistic credit strategy.
Through its lending programme, Arrow Global’s investment team pursues a differentiated strategy of providing flexible financing solutions tailored to investors and developers backed by quality living real estate assets.
Arrow Real Estate stated that the bespoke approach of its lending strategy allows it to support real estate investors and developers throughout the lifecycle of their projects. This flexible investment approach aims to deliver attractive risk-adjusted returns across market cycles from a diversified and resilient portfolio and benefits from the attractive tailwinds of the underlying living sector.
“Arrow Global’s European real estate lending strategy is well-aligned with the market’s shift toward more flexible and reliable real estate financing solutions, and Arrow’s strong track record makes it an attractive investment opportunity,” said Mohamed Al Qubaisi, executive director, real estate department, ADIA.
In line with delivering attractive risk-adjusted returns, ESG considerations are built into all stages of the investment process to ensure a responsible approach to investing and alignment with international industry standards such as the Principles for Responsible Investment (PRI) and the Global Real Estate Sustainability Benchmark (GRESB).
London-based Arrow owns 22 leading platform capabilities across Europe including Maslow Capital and has €95 billion in servicing assets under management.
Arrow’s recent deals include the structuring of a £29 million bridge loan to refinance a recently completed 35-flat residential development in London, a £13 million redevelopment package for the conversion of a former police station in London into a 29-unit residential development, and a £129 million loan for the development of a high-end 477 apartment complex in Manchester.
These deals formed part of a total lending volume of over €1.2 billion in 2023 which, to date, has financed the development of more than 18,000 units, spanning more than 11 million sq ft (1.02 million sq m) of real estate.
