Alternative asset manager Cheyne Capital Management (UK) (Cheyne fund) has opened a new office in Paris – the firm’s fifth office in Europe and its eighth globally.
Stuart Fiertz, Co-Founder, President & Head of Responsible Investment at Cheyne Capital, says: “Since 2018, our private credit investment teams have continued to see more and more interesting opportunities in Europe and particularly in France, so opening an office in Paris was the natural next step. Being in close proximity to those we finance is important to us and we look forward to growing our presence in the country further.”
Over the past four years, Cheyne Real Estate has deployed close to EUR850 million in France through 14 real estate loans. The opening of a Paris office will support origination and improve the team’s access to attractive lending opportunities in the region, ultimately enabling the continued growth of its presence in this key market.
Raphael Smadja, Head of French Real Estate at Cheyne Capital, adds: “We recognised several years ago that the opportunity set for senior and mezzanine real estate lending in France was growing rapidly, so we have built a team that is able to capitalise on this, combining excellent local knowledge with expertise in investing across the capital structure. That we are now launching a Paris office is indicative of the success the team has had to date, and the confidence that we have in our ability to continue to strengthen our position in this market and realise value for our investors.”
The Paris-based team has also announced its most recent transaction, in which it provided a senior loan to an office development in Bagneux. The project, acquired by Hemisphere and Bain Capital, will deliver almost 15,000 sq m of low-rise office and leisure space, just 450m from the future Gare de Bagneux metro station and will meet high environmental standards.
Earlier in the year, Cheyne was named Private Debt Investor’s Real Estate Debt Manager of the Year, Europe, as well as Real Estate Capital’s Alternative Lender of the Year in France for a second consecutive year. The firm’s Colisée investment was also named Financing Deal of the Year: France
Franck Laval, Managing Director of Cheyne Strategic Value Credit, will also be based in the Paris office. Cheyne Strategic Value Credit Fund I has already committed approximately EUR140 million to French investments. France is a core geography for the strategy which helps strong businesses facing liquidity challenges to survive and preserve jobs through measures such as consensual restructuring or provision of rescue financing.
Franck Laval, Managing Director of Cheyne Strategic Value Credit says: “France is a key market where we have a positive experience of supporting companies through difficult periods and helping them thrive. With a strong pipeline of local opportunities, now seems like a sensible time to make a formal commitment to the region.”
July 6, 2021 (Investorideas.com Newswire) A new survey (1) of institutional investors and wealth managers from the US, UK, France, Germany, and the UAE who currently have exposure to cryptocurrencies and digital assets, reveals that 82% expect to increase their exposure between now and 2023. Four out of ten say they will dramatically increase their holdings. Only 1% said they would sell their entire holdings, and just 7% said they would reduce their exposure.
However, Nickel Digital Asset Management (Nickel), Europe’s leading regulated and award-winning investment manager dedicated to the digital assets market, which conducted the study, says in most cases institutional investors with holdings in Bitcoin and other cryptocurrencies have very low levels of exposure as many have just been testing to market to see how it works.
The main reason given for investing more in digital assets is the long-term capital growth prospects of cryptocurrencies and digital assets – the view cited by 58% of respondents. This is followed by 38% who said it is because having some exposure to cryptoassets means they have become more comfortable and confident in holding the asset class. Some 37% cited more leading corporates and fund managers investing in cryptoassets as a reason as this too is giving them more confidence, and 34% said an improving regulatory environment was also a key factor in wanting to increase their allocation.
Anatoly Crachilov, co-Founder and CEO of Nickel Digital, commented:
“The number of institutional investors and corporates holding Bitcoin and other cryptoassets is growing and their confidence in the asset class is also increasing. Our analysis (2) at the start of June this year revealed that 19 listed companies with a market cap of over $1 trillion had around $6.5 billion invested in Bitcoin, having originally spent $4.3 billion buying the cryptocurrency. We also found a staggering $43.2 billion worth of bitcoin is held through various bitcoin closed-ended trusts and exchange traded products.
“Many of those professional investors with holdings in cryptoassets are looking to increase their exposure and this is being driven by several factors including strong market performance during the Covid-19 crisis, more established investors and corporations endorsing the market, and the sector’s infrastructure and regulatory framework improving. These trends will continue to expand.”
Nickel Digital’s infrastructure is designed to offer various access points to the crypto market
Nickel currently has four funds investing in the digital asset space. Its market-neutral Digital Asset Arbitrage Fund pursues an absolute return strategy without expressing directional views on the underlying cryptoassets market. It exploits market inefficiencies and price dislocations and harnesses swings of volatility to deliver consistent positive returns within a strictly defined risk management framework. Since inception 24 months ago, the fund has delivered strong risk-adjusted returns with no drawdown months and Sharpe of over 4.
The Nickel Diversified Alpha (Digital Factors) Fund is a non-directional multi-strategy fund which wraps a portfolio of attractive but hard-to-access and capacity-constrained strategies into a single, investible fund. Among the strategies it deploys are high-frequency market making, statistical arbitrage, relative value, trend following, and momentum.
Digital Leaders DeFi Fund is designed to capture the growth potential of the broader digital assets space outside Bitcoin, also called Altcoin space, spotting early winners in Layer 1 protocols and Decentralised Finance, the area of greatest financial innovation. The fund is an actively-managed research-driven vehicle.
Nickel’s Digital Gold Institutional Fund, a Bitcoin tracker, provides secure, efficient, transparent, and liquid access to physically allocated Bitcoin. It delivers institutional-grade precision of trade execution available 7 days a week with one of the industry’s lowest expense ratios.
Defensive Bitcoin Fund aims to offer institutional-grade exposure to Bitcoin while managing downside volatility of this exposure. Nickel will apply an overlay of derivative instruments to reduce downside volatility while aiming to capture the majority of the upside. Nickel aims to launch the fund in August 2021.
Footnotes
Nickel Digital commissioned the market research company Pureprofile to interview 50 wealth managers and 50 institutional investors across the US, UK, France, Germany, and the UAE. The survey was conducted online in May and June 2021.
Nickel Digital Asset Management (www.nickel.digital) is a London-based FCA-authorised and regulated investment firm that offers a range of digital asset strategy solutions for institutional investors. Its mission is to provide an institutional grade gateway into the digital assets market for institutional investors.
The firm deploys highly sophisticated low-latency algorithmic trading, pursuing a range of arbitrage strategies in both spot and derivative markets, as well as offering directional exposure to the market aiming to capture the structural expansion of this space.
Nickel is led by a senior team of traders and investment professionals of experience gained in major Wall Street banks, such as Bankers Trust, Goldman Sachs, JPMorgan, Morgan Stanley, BofA Merrill Lynch, Rothschild, and Credit Suisse, as well as global hedge funds, including DE Shaw, Tudor, Eisler Capital, and Cheyne Capital.
Risk management is the core of Nickel’s approach to investment management. This was evidenced in both March 2020 and May 2021, the times of sharp market sell off, when Nickel protected investor capital and delivered positive returns. Nickel was named by Opalesque, the hedge fund advisory firm, as top 2% of global asset managers “who delivered during the meltdown”.
Nickel’s flagship fund, the market-neutral Digital Asset Arbitrage fund, won HFM EuroHedge 2020 Emerging Manager Awards in the Specialist category.
Nickel Digital Asset Management is authorised and regulated by UK’s FCA.
This session gives a post-Covid reappraisal of investment in property. With the LGPS being long-term investors identifying the opportunities and the risks in particular areas, it covers: retail and the decline of the high street, de-malling and expansion of e-commerce; offices and the reduced footprint in city centres and ensuring workplaces are fit for purpose; and residential, where there is still a massive need but there are questions about how we can future-proof our property portfolio.
They discuss: how funds can co-ordinate their interests with those of the pool; how collaboration can provide greater impact as a driving force for change both nationally and globally; and the involvement of pension scheme members – raising their awareness and ensuring their needs are met.
Mulbury has bolstered its city centre development expertise with the appointment of two new development managers.
The company has appointed Jamie Sutton as development manager, while Adam Turner joins as assistant development manager.
Jamie, who lives in Knutsford, joins from RLB where he worked for five years as an associate delivering residential and commercial schemes worth up to £30m, including working alongside Mulbury on its Excelsior Works development of 108 luxury apartments in Castlefield, which completed in 2020.
He will help to deliver the recently approved Oldham Road and Bendix Street apartment developments in Manchester’s New Cross district which, between them, will deliver more than 300 apartments.
Mulbury, which has offices in Lymm and Manchester, is now on site at Oldham Road having agreed a £32m forward funding deal with Cheyne fund in January.
Meanwhile Adam will manage a third New Cross development, the 73 apartments planned for the former Goulden Street police, fire and ambulance station, now named Peelers Yard.
Adam, from Newton-le-Willows, has eight years’ quantity surveying experience, including five years at Taylor Wimpey where he delivered more than 600 homes with a value worth £50m.
Nick Legget, development director at Mulbury and head of the company’s Mulbury City division, said: “Jamie and Adam have a wealth of knowledge and experience delivering high value and high quality schemes. Their appointments really bolster our city centre capacity and capabilities.
“They’ll be instrumental in helping Mulbury deliver its strong pipeline of key city centre developments, including almost 400 new homes in the heart of New Cross.”
Liverpool-based Prospect Homes has appointed engineer Craig Holding to play an integral part in the company’s expansion plans, by adding further expertise to the technical team.
Craig, 43, from Leigh, has joined the company after three years with Mulbury, where he was an engineering manager. Prior to Mulbury, he has also worked at Keepmoat in a similar role.
He said: “I’ve joined the company at a really exciting time. Prospect is going in a very positive, forward thinking direction and has plans to grow its operations over the next few years.
“I’m one of a number of new members to join the company so this fresh perspective means we’re all really passionate about taking the company to the next level. I’ll be working closely with Riverside, who Prospect Homes is part of, to develop larger scale mixed tenure opportunities as well as private sites for Prospect Homes.”
Prospect Homes is part of The Riverside Group and all profits are gifted back to The Riverside Group to fund a wide range of social purpose business including affordable homes and care and community support services.
Craig studied The Built Environment at college. He then went on to achieve a HND in Civil Engineering and a BTEC in Construction. When he left, he went straight into work as a junior engineer at Allen Civil Engineering.
Nigel Yates, managing director at Prospect Homes, said: “Craig is a real asset to the business. He comes with plenty of experience and knowledge meaning our current and future sites are in excellent hands to enable us to continue to deliver quality, much needed new homes across the North West.”
Foursquare Group, the Liverpool company that helps independent hospitality venues to start up, run, grow and protect themselves, has bolstered its team with a third and final non-executive director as it continues its ‘customer-first’ approach to new areas and markets.
Garry Lee, a former CEO of a multimillion-pound tech business, has joined the board after Simon Taylor and Louise Kissack became non-Eeecutive directors earlier this year.
Foursquare Group offers a range of services for independent hospitality businesses, helping them implement policies, procedures, contracts, compliance, operations and manage people, as well as helping businesses train their staff to be better and safer in the working environment.
Over the past 18 months, the group’s commitment to the independent hospitality industry has been evident, with its UK first Pay What You Can COVID-safe scheme, and the ongoing support Foursquare Group has provided throughout the pandemic.
As the group expands and diversifies, it has bolstered its leadership team to ensure the company delivers the very best products and services possible.
Garry’s main focus will be on the creation and development of two new online products for the group that will see it diversify and continue its expansion. He has gained his experience and credentials after taking a tech business from £250,000 to £14m and launching the UK’s first triggered emails back in 2001, leading to market automation.
Liam Jones, founder and CEO of Foursquare, said: “The world has changed over the last 18 months. We’ve all had to adapt to new ways of working, connecting with one another and receiving information. We’ve been busy figuring out how our business can adapt to take account of this, and I’m delighted with the plan we have.
“Over the course of the next six-12 months, we will be launching two new online products and streamlining our existing ones to offer a more dynamic and bespoke experience for our Indie clients. Garry’s skills and experience in the technology industry will be a key part of the process for us.”
Garry added: “I love supporting small businesses and working with businesses that have a strong set of values to help people, so this opportunity is incredibly exciting for me and I’m looking forward to contributing to growing the business and helping some amazing local restaurants.”
Bridging Finance Solutions continues to grow and strengthen its nationwide team, appointing Angie Jones as business development manager for the North West.
A former private banking relationship manager for NatWest, Angie brings a wealth of personal finance experience to her role. She has developed strong relationships with a vast professional network, including individuals and businesses, through three-plus decades of employment at NatWest.
Angie said: “This is a significant and important move for me having worked within the banking industry for so many years. The changing nature of the sector, however, means that the cultivation of personal relationships that where once considered so important are being replaced by automation and online processing.
“Whilst BFS is undoubtedly tech driven, a recognition of one-to-one service and building lasting relationships remains a priority, which I believe is incredibly important.
“BFS is growing quickly and it’s great to be part of this exciting enterprise. Even whilst expansion is under way, the firm’s values remain the same and BFS undoubtedly owns a strong family driven ethos and one that is built on relationships, both in house and externally.”
Steve Barber, BSF managing director, said: “Angie owns a vast amount of experience within the banking and wider finance industry. I believe that she is ready for a fresh challenge, working with a new product that is not available to customers on the high street.
“She has some strong contacts, and is already building her network further across the North West where part of her role will be to educate customers on the varied and flexible uses of bridging finance.”
Private equity investor Endless has announced a further seven promotions across its offices in Manchester, Leeds and London following its recent announcement of the appointment of four new partners.
In the Endless Manchester office Lee Abbott has been promoted to director. Lee joined Endless five years ago following roles at KPMG and Bodycote. During his career so far at Endless Lee has led a number of complex and high profile due diligence projects, which have been integral to securing investments including complex carve-out transactions and accelerated acquisitions.
Also in Manchester, Sian Williams has been promoted to investment manager. Sian joined Endless in 2017 having previously qualified as a Chartered Accountant at PwC.
Tom Jack, partner leading Endless’s Manchester office, said: “We’re delighted to be able to congratulate Lee and Sian on their well deserved promotions.
“These are great milestones in their careers and reflects their fantastic contribution to our business across a range of investments.”
The appointments follow a year of significant deal activity for Endless, which included investments into Hovis, one of the most iconic food brands in the UK, and Amscan International, an international market leader in party products. Most recently Endless completed its first investment from £400m Endless Fund V with the acquisition of Findel Education, a leading e-commerce specialist in educational resources.
Enact, the SME fund investing Enact Fund II of £30m, was similarly busy and completed the acquisitions of Realise, an apprenticeship provider, Evolutions, a leading TV post-production business, Bartoline, a heritage manufacturer of decorating products, and, most recently, the acquisition of Edbro, a leading manufacturer of hydraulic cylinders based in Bolton.
Gezz Van Zwanenberg has been appointed as the new chief operating officer for Prescot-based HCRG’s health and social care division, where he will play an instrumental role in helping the team meet ambitious growth targets.
Gezz has a background of leadership in both operational and strategic roles in the military, health and business settings. He served as a squadron leader in the RAF, and as a consultant nurse in critical care Gezz was awarded the Ambulance Service Institute President’s award for Critical Care Air Support to patient care during operations in Afghanistan while leading the CCAST teams.
He has also been recognised for leading multiple large successful projects including, winning the Health Service Journals 2017 patient safety award. In the past year, Gezz has been part of the NHSE/I London critical care cell in response to the pandemic with a clinical lead/liaison role between NHS, Military, LAS and the Nightingale hospital, as well as maintaining his role as the Nurse and Project Lead in NWL which he has held for 10 years.
Gezz said: “I am delighted to join the HCRG family. I am excited to start this new role and I am really looking forward to adding value, energy and influencing colleagues, teams and patients.”
Gezz will support the management teams across the portfolio of brands, including CRG, HCL, Jigsaw and Sugarman, and will be responsible for group wide operations, as well as taking the helm of a number of the smaller business units, to ensure each arm of the business is fully supported and empowered to grow.
In his new role, Gezz will also be taking responsibility for the group wide clinical governance agenda, diversification agenda and the continuous improvement plan.
Gary Taylor, group CEO, said: “Gezz brings a wealth of experience and a great blend of leadership, management and clinical skills and insight. He complements the fantastic management team I already have in place and will support me and the team in expediting the growth of our sustainable staffing services, whilst also enhancing the care delivery and occupational health arms of the business with his wealth of clinical expertise.”
Au 1er semestre 2020/2021, le groupe MND a réalisé un chiffre d’affaires consolidé de 28,2 ME, en léger repli de 5% par rapport au 1er semestre 2019/2020. Dans un environnement économique marqué, pour les professionnels de la montagne, par la fermeture administrative des remontées mécaniques européennes depuis plus d’un an, MND a su faire preuve de résilience en tirant parti de son offre globale multi-activités 4 saisons et de sa présence internationale multi-continents.
Le pôle Enneigement & Remontées mécaniques a enregistré un chiffre d’affaires de 17,1 ME au 1er semestre 2020/2021, en progression de +6%. Le semestre a notamment été marqué par l’installation de systèmes d’enneigement pour des domaines skiables en France, Italie, Autriche, Suisse et Japon.
Le chiffre d’affaires semestriel du pôle Sécurité & Loisirs s’est établi à 11 ME, en repli de -18%, principalement en raison de la baisse des ventes de produits et de services liés à l’exploitation des domaines skiables5.
Sur le plan géographique, le groupe MND a réalisé 41% de son activité semestrielle 2020/2021 en France (vs. 40% sur l’ensemble de l’exercice 2019/2020), 40% en Europe (hors France) (vs. 41% en 2019/2020) et 19% dans le reste du monde (vs. 19% en 2019/2020).
EBITDA AJUSTE A L’EQUILIBRE AU 1ER SEMESTRE 2020/2021
Au-delà de ce niveau d’activité satisfaisant malgré la crise sanitaire et économique, le 1er semestre 2020/2021 a été marqué par la mise en oeuvre du plan stratégique “Succeed Together 2024”, qui vise à opérer la transformation industrielle et commerciale du Groupe afin de construire une trajectoire de croissance maîtrisée et rentable.
Le volet excellence opérationnelle de ce plan, illustré par le regroupement des pôles et leur relocalisation industrielle en France, a d’ores et déjà commencé à produire ses premiers effets, avec une marge brute en valeur en hausse de +4%. Le taux de marge brute progresse ainsi de +3 points, à 35%, contre 32% au 1er semestre 2019/20.
Grâce à la maîtrise des charges opérationnelles (recul de -10% des charges externes sur la période) et à la matérialisation des premières économies d’échelle liées à la rationalisation du nombre de sites industriels et de filiales de distribution, le Groupe a atteint le point mort opérationnel dès le 1er semestre 2020/2021. L’EBITDA ajusté s’est ainsi élevé à 0,2 ME, contre une perte de -13,8 ME au 1er semestre 2019/2020.
L’atteinte de l’équilibre opérationnel est également le résultat des mesures de soutien destinées aux entreprises et à la filière Montagne mises en place par le gouvernement français pour faire face à la pandémie et à la fermeture administrative des remontées mécaniques.
Après prise en compte des dotations aux amortissements, dépréciations et provisions, le résultat opérationnel courant ressort à -2,2 ME, contre -16,5 ME au 1er semestre 2019/2020. Les autres produits et charges opérationnels se sont limités à -0,6 ME sur le semestre, conduisant à un résultat opérationnel de -2,9 ME.
Le résultat financier, qui s’élève à -5,6 ME à fin décembre 2020, intègre notamment la restructuration de la dette financière opérée au cours de l’exercice, les frais d’émission d’emprunt et les indemnités de conversion et de parité des emprunts obligataires.
Au final, le résultat net s’établit à -8,2 ME au 1er semestre 2020/2021, en amélioration notable de +11 ME par rapport au 1er semestre 2019/2020.
Le renforcement de la situation financière de MND, mis en oeuvre depuis mi-2019, s’est poursuivi au 1er semestre 2020/2021. A fin juillet 2020, le Groupe a obtenu 38 ME de nouveaux financements auprès de l’État français, de la région Auvergne-Rhône-Alpes et de son partenaire financier Cheyne Capital.
Au 31 décembre 2020, les capitaux propres consolidés de MND s’élevaient à -54,1 ME, contre -52,4 ME à fin juin 2020. Les capitaux propres sociaux de MND s’élevaient pour leur part à 16 ME au 31 décembre 2020 contre 10,8 ME au 30 juin 2020.
L’endettement financier net (hors dettes locatives IFRS 16) s’élevait à 91,3 ME à fin décembre 2020, contre 74,9 ME à fin juin 2020 dont 7,3 ME de trésorerie disponible.
Dans le cadre de la crise sanitaire et de la conclusion des opérations de financement réalisées au cours de ce 1er semestre, le groupe MND a bénéficié de la part de Cheyne Capital d’une suspension de calcul de ses covenants financiers pour les périodes trimestrielles du 30 septembre 2020, du 31 décembre 2020 et du 31 mars 2021.
La société a fait une revue de son risque de liquidité et considère être en mesure d’assurer le financement de ses activités au cours des douze prochains mois.
UN DEBUT D’ANNÉE 2021 DYNAMIQUE SUR LE PLAN COMMERCIAL
Au 31 décembre 2020, le carnet de commandes fermes du Groupe s’établissait à 46,6 ME, en progression de +9% par rapport à fin juin7. Les commandes à facturer au 2nd semestre de l’exercice 2020/2021 représentaient 14,4 ME du carnet de commandes à fin décembre.
Après un ralentissement aux 2ème et 3ème trimestres de l’exercice 2020/2021 (d’octobre 2020 à mars 2021), sous l’effet de la fermeture administrative des remontées mécaniques, la prise de commandes est à nouveau particulièrement dynamique depuis plusieurs semaines. Ainsi, le Groupe vient de remporter de nombreux succès, dont la réalisation d’une télécabine 10 places et d’un télésiège 6 places pour la station de ski de Mamison en Russie pour un montant de 17,5 ME ou la construction d’un premier télésiège débrayable pour la station de Waterville aux États-Unis pour un montant de 9 MUSD.
Au total, MND a ainsi enregistré près de 35 ME de nouvelles commandes fermes depuis le début de l’année 2021. Au 30 avril 2021, le carnet de commandes fermes était ainsi porté à 72,9 ME, contre 46,6 ME à fin décembre 2020, soit une progression de +56% en quatre mois.
Cette dynamique commerciale, qui vient s’ajouter aux contrats majeurs remportés en 2020, notamment dans le transport urbain avec la construction de la 2nde ligne du réseau de téléphérique urbain de Saint-Denis de La Réunion et du nouveau téléphérique urbain et touristique de la ville de Huy en Belgique, positionne le Groupe dans de bonnes conditions pour débuter le prochain exercice 2021/2022.
PERSPECTIVES DU 2ND SEMESTRE 2020/2021
La crise sanitaire a continué de peser sur le niveau d’activité au 3ème trimestre 2020/2021, notamment en France et en Europe. Toutefois, l’amélioration progressive de la visibilité et la bonne dynamique commerciale des dernières semaines, portée par la présence multi-continents du Groupe, permettent d’envisager un chiffre d’affaires annuel 2020/2021 au même niveau que celui de l’exercice précédent (rappel : 40,3 ME de chiffre d’affaires en 2019/2020).
Grâce au plan de performance opérationnelle et industrielle, aux effets des mesures d’économies et à l’appui des mesures gouvernementales de soutien aux entreprises, MND confirme son objectif d’équilibre opérationnel (EBITDA ajusté) sur l’ensemble de l’exercice 2020/2021.
Xavier Gallot-Lavallée, Président – Directeur général de MND, a déclaré : “Le 1er semestre 2020/2021 témoigne du succès de notre plan ” Succeed Together 2024 ” de transformation industrielle et commerciale : dans un contexte de marché fortement perturbé, le Groupe est parvenu à limiter le recul de son activité, à faire progresser sa marge brute et atteindre l’équilibre opérationnel alors même que toutes les actions n’ont pas encore pleinement porté leurs effets.
Au-delà de cette résilience, la dynamique commerciale actuelle et les nombreux atouts du Groupe – activités diversifiées et 4 saisons, montée en puissance du transport urbain, présence multi-continents, solutions au coeur des enjeux environnementaux – permettent aujourd’hui d’envisager une poursuite de cette trajectoire vertueuse en 2021/2022.”
Alternative asset manager Cheyne Capital Management (UK) LLP (Cheyne Capital) has provided a GBGP46.5 million senior development loan to finance a large purpose-built student accommodation (PBSA) development in Brighton, England.
The new Student Roost development on Moulsecoomb Way, which will be named Hillfort House, will consist of 380 beds, as well as close to 14,000 sq ft of ancillary commercial space, in a prime location in Brighton close to both universities. Hillfort House is being developed by McLaren Property, who have delivered a number of successful projects within the City of Brighton. The new property is being constructed by HG Construction to high ESG standards, providing several environmentally positive initiatives, including cycle storage facilities, motion-controlled lighting sensors and EV charging points, as well as constructing a community unit.
The Sponsor, Student Roost, will own and operate the completed scheme. Student Roost is an award-winning PBSA provider in the UK market with a portfolio of approximately 20,000 operational beds under management. In addition, McLaren and HG Construction are also highly experienced with an established track record of delivering successful schemes. Construction of Hillfort House is well progressed and forecast to open ahead of the 2022/23 academic year.
Richard Howe of Cheyne Real Estate says: “This is precisely the kind of investment that Cheyne likes to pursue. We seek to work with experienced sponsors with extensive track records, with whom we can build long-term partnerships – and that’s what we have with Student Roost. Moreover, we look to identify senior lending opportunities in value-add or development assets in attractive locations at defensive loan-to-values. Student accommodation is a sector that we think is very promising – particularly in places like Brighton where the supply of quality purpose-built student accommodation has not kept up with growing student demand”.
Stephen Rigby, Chief Investment Officer at Student Roost, says: “We’re pleased to reach this important milestone of our first investment in Brighton, Hillfort House. Despite the strong resilience of the PBSA sector and the continued strong reputation of UK universities, the disruption to higher education as a result of the pandemic has meant that the debt markets have been challenging to navigate over the last 12 months.
“However, Cheyne provided a really compelling structure for us on this deal which we’re very happy to get over the line.”
The investment comes from the latest vintage of Cheyne’s CRECH programme, the firm’s real estate direct lending strategy, which launched in 2011.
Mulbury has bolstered its city centre development expertise with the appointment of two new development managers.
The company has appointed Jamie Sutton as development manager, while Adam Turner joins as assistant development manager.
Jamie, who lives in Knutsford, joins from RLB where he worked for five years as an associate delivering residential and commercial schemes worth up to £30million, including working alongside Mulbury on its Excelsior Works development of 108 luxury apartments in Castlefield which completed in 2020.
He will help to deliver the recently approved Oldham Road and Bendix Street apartment developments in Manchester’s New Cross district which between them will deliver over 300 apartments.
Mulbury is now on site at Oldham Road having agreed a £32m forward funding deal with Cheyne Capital in January.
Meanwhile Adam will manage a third New Cross development, the 73 apartments planned for the former Goulden Street police, fire and ambulance station, now named Peelers Yard.
Adam, from Newton-le-Willows, has eight years’ quantity surveying experience, including five years at Taylor Wimpey where he delivered over 600 homes with a value worth £50m.
Nick Legget, development director at Mulbury and head of the company’s Mulbury City division, said: “Jamie and Adam have a wealth of knowledge and experience delivering high-value and high-quality schemes. Their appointments really bolster our city centre capacity and capabilities.
“They’ll be instrumental in helping Mulbury deliver its strong pipeline of key city centre developments, including almost 400 new homes in the heart of New Cross.”
Cheyne Capital has committed further capital to charitable group Thera Trust from its recently-launched second impact real estate fund, Cheyne Impact Real Estate Trust.
Its investment will enable the purchase of houses and bungalows across the UK, bringing the number of people housed by the partnership to 180.
It follows previous investments in 2015 and 2018 by Cheyne in Thera, a group of charitable companies providing support for people with a learning disabilities.
An audit report of the investment by the Policy Institute of King’s College London has found that the investment programme is having a “real impact on individual lives”.
The properties that Cheyne fund purchases for Thera’s housing subsidiary, Forward Housing, are intended as ‘homes for life’ and offer tenants a choice in their accommodation, security of tenure and the opportunity to remain part of their local communities.
Staff, families, local council commissioners and Forward Housing are all involved in ensuring tenants’ homes are best suited to their specific needs.
The report by King’s College London says: “The pandemic crisis emphasises the importance of good housing, as people are forced to spend much more time in their homes. It also demonstrates the fragility of systems intended to meet the needs of vulnerable groups such as adults with learning disabilities, as local authorities’ social care obligations have been pared back. These unique circumstances underscore the value of innovative models of financing and provision, such as that provided by the fund.”
The report adds that Cheyne-Thera model “demonstrates that it is possible to provide high quality housing that meets the needs of people with learning disabilities, within current funding constraints”, adding: “The homes that the fund has supplied as well as the associated care arrangement have been the backbone of significant changes in the lives of these residents. Improvements have been observed in their health, happiness and wellbeing, their independence and their relationships with others. These changes have also had a profound effect on the lives of family members, who are satisfied that their relative is living in a safe, suitable and comfortable environment.”
Stuart Fiertz, co-founder and president of Cheyne Capital, said: “Over the past few years we have witnessed first-hand what a profound impact Thera’s housing can have on the lives of its tenants.
“The pandemic has highlighted the fragility of the ecosystem and the vulnerability of adults with a learning disability, so we are proud to continue working with Thera to provide innovative models of financing and housing which can make such a difference and give tenants greater security and independence.”
Ravi Stickney, managing partner and CIO of real estate at Cheyne Capital, said: “In addition, this partnership has proven its investment thesis. Our investment with Thera quickly provided a financial return to our investors – demonstrating that you truly can balance financial returns with social impact.
“This is a prime example of the results that can be achieved when charitable or social sector institutions and private capital work together to provide solutions for those that need them most.”
A social impact real estate fund run by London-based alternative asset manager Cheyne Capital has made a “real impact on individual lives”, an independent audit by King’s College London’s Policy Institute has found.
The Cheyne Social Property Impact Fund – which invests across affordable and keyworker housing, temporary accommodation, and homes for adults with learning disabilities – has offered “genuine value to local authorities compared with their other options for delivering affordable housing”, the audit noted.
Launched in 2014 to help tackle the housing shortage faced by disadvantaged groups in the UK, Cheyne’s first social impact strategy has been audited on an annual basis for the past seven years by KCL’s Policy Institute.
“Sources have consistently reported that the quality of homes delivered by the fund is higher than what is generally available for affordable housing, providing a new standard of what should be possible,” the report said.
The audit – which measured the impact of each of the fund’s investments – indicated that Cheyne’s involvement in each project has helped raise living standards, and made a “real impact on [the] individual lives” of the various stakeholders, spanning tenants, council representatives and the wider community.
Stuart Fiertz, Cheyne’s co-founder, president and head of responsible investment, described the results of the audit as “a source of great pride.”
“When we launched this strategy seven years ago, we were confident that our approach would balance social and financial returns – but, as is often the case when venturing into new territory, many questioned whether this could be done,” Fiertz added.
He said the Policy Institute’s audit “not only confirms our belief – that social and financial returns can be complementary – but which also asserts that we are setting a new standard of what is possible.”
The fund has enabled local authorities to provide high quality emergency and temporary accommodation during a protracted housing affordability crisis, the audit noted, adding the fund “has filled a need in several housing spheres, beyond homelessness.”
The fund’s investment approach “can be thought of as a proof-of-concept for the viability and cost-saving potential of private investment to help local authorities in the provision of affordable housing,” it added.
Dr Rebecca Benson of King’s College London said: “Many of our fieldwork participants for this and previous reports have commented on the Fund’s flexibility and creativity, and reported a general impression of the fund as an investor willing to work with partners to find financial solutions for their unique needs.”
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