Invesco Real Estate, the global real estate investment manager with US$79.8 billion under management, and GAM Investments have agreed to transfer GAM’s commercial real estate debt finance business, including its European real estate debt team and corresponding European assets and investor relationships, across to Invesco.
The expansion of Invesco’s debt capabilities will see a seven-strong London-based team, led by Andrew Gordon, Head of Real Estate Debt at GAM, relocate across to the London office of Invesco along with a debt portfolio of c. US$300 million. The assets are held in one separate account and two active funds. In the near to mid-term, Invesco is expecting to further expand its European capabilities and offering.
This hugely important milestone for Invesco’s global business sees it complete its European real estate capabilities, allowing the firm to satisfy client demand for both equity and debt, and complements its global coverage across listed/direct, equity/debt and core to opportunistic.
Invesco has a very established US debt operation with commitments currently totalling around US$1.78 billion from a diversified group of institutional investors. Since 2013, the firm’s US debt team has originated US$8.2 billion in loans with no realised losses1.
The new European debt team, who will report to Andy Rofe, Managing Director – Europe at Invesco Real Estate, has an equally strong track record of success serving an institutional client base of principally UK pension funds and insurance companies. The team has delivered around 45 loans totalling c. US$1 billion over the past seven years. All 22 existing investors will move across to Invesco, of which a third already have an existing relationship within Invesco’s wider parent company business.
Invesco has a strong presence in the European real estate market, with US$14.6 billion in European direct investments1. In June it held the third close of its European Value-Add Fund II, having raised EUR550 million of its EUR750 million target from 18 European, UK and US investors. Ninety per cent of the investors in Invesco’s first value-add fund have committed to EVAF II.
“The dynamics shaping the European debt market are very attractive, and we are keen to fast track our European offering with our new debt team. This gives us highly experienced professionals and asset class momentum from day one, with a view to developing the debt proposition further,” said Andy Rofe, Managing Director – Head of Europe at Invesco Real Estate. “We are delighted to welcome Andrew and the team.”
Andrew Gordon, who will lead the European Debt team at Invesco Real Estate, said: “Invesco Real Estate has an excellent reputation in the industry, with exceptional investor relationships and long-term investment performance. This supports its aspiration to build on its European positioning with a highly competitive, market-leading European debt offering.”