Equity Hedge

Bridging The market supply and demand gap...

asset manager partnerships

At Equity Hedge, by identifying and partnering with global asset managers, through our deep local knowledge in target regions, we can uncover compelling opportunities in commercial real estate in global gateway cities, niche hard assets and diversified investment opportunities delivered by carefully selected sector experts.

REAL ESTATE CLIENT SOLUTIONS

Our real estate solutions have been developed to suit different client needs as well as differing levels of LTVs to corporate entities and private individuals, in syndicated structure, or intermediary structure, sourcing and assembling a fully flexible, diversified and bespoke commercial loans.

STRONG STRUCTURING CAPABILITY

Our clients will benefit from our strong structuring capability which seeks to maximise asset and efficiency as well as investment return potential with a broad and comprehensive range of commercial loans.

 

Every homeowner understands the difference between their mortgage and the equity they have in their home, but commercial real estate finance can be much more complex, involving numerous parties and a variety of structures. A variety of finance instruments may be in play for any given commercial real estate transaction, some of which are favoured strategies over the past several decades. During times of market volatility, even experienced property owners or developers should pay special attention to and may benefit from a review of the liquidity sensitivities, capital stack, and the material differences between equity, preferred equity, mezzanine debt, and senior debt.

 

 

 

 

REAL ESTATE FUNDING PHILOSOPHY

We believe that inefficiencies exist in commercial loan and mortgage markets. Equity Hedge having access to global lender's networks and asset managers can help to uncover best-in-class and mispriced investment opportunities for the real estate owners in the UK. As mispricing is both equity and cashflow related, this creates an opportunity for enhanced returns, potential for yield and capital growth, over all appreciations and low volatility which – coupled with Equity Hedge’s creative loan sourcing and intelligent structuring – can unlock and maximise hidden value potential in your real estate portfolio.

REAL ESTATE DEBT FUNDS

In recent years, non-bank real estate lenders have navigated through volatile lending conditions, but the current landscape presents a fresh array of opportunities. Non-regulated lenders are strategically leveraging the uncertainties created by rising interest rates. By rising interest rates when inflation is high, central banks influence both the amount and cost of loans that people and companies can get.

 

The rapidly shifting macroeconomic landscape and market volatility have led to traditional lenders exercising caution in the higher-rate environment as they are heavily regulated. Regulated lenders are unlikely to increase their risk appetites at a time when Global Economic uncertainty remains elevated, weighing on growth. There has been a substantial tightening of credit standards for loans or credit lines to businesses.

 

 

Alternative lenders and non- regulated commercial or specialist lenders are not regulated the same way as traditional lenders. Instead, they are only bound by certain rules for lenders. Such lenders with their risk appetites have been taking advantage of this tightening of belts from regulators. Liquidity Investment Asset Management is one such real estate debt fund manager who brought its fifth real estate debt fund to the UK market earlier this year.

 

 

Loan pricing has increased across the UK and European markets, lending margins increased across sectors. Whilst traditional lenders’ pricing for senior debt has increased, and alternative lenders’ debt funds have adjusted downwards due to more competition amongst them and are now closer to traditional lenders. There is now less differentiation between traditional lenders and alternative lenders in the senior debt space.

 

 

 

 

 

 

 

agricultural mortgage

Flexible structured mortgages designed to help your farmlands, farm steadings or improve farm infrastructure.

rural ASSET

Equipment finanace on fixed-term, fixed-rate hire purchase or lease.

 

 

renewable energy

Purchase or construction of established renewable technology with established off-take