March 9, 2020
In November 2019, Proventus Capital Partners provided an asset-backed term loan of GBP 20 million to a subsidiary of the United Kingdom focused real estate group GMV Holdings (“GMVH”). The proceeds were used to support growth investments across the GMVH group and to refinance existing loans.
The PCP loan is secured in an existing property located in central Birmingham. The property is currently used for office purposes but given its characteristics and the overall development of the real estate market in Birmingham, the property is suitable for residential redevelopment. The asset and the redevelopment project are managed by Commercial Estates Group (“CEG”), the United Kingdom based company active across several areas of real estate, including investment, management and development. CEG’s total portfolio covers nine million square feet, with a capital value of around GBP 800 million.
Proventus Capital Partners believes that there is a solid demand for new housing in central Birmingham, supported by factors including the city’s the high share of young professionals as well as the inflow of new businesses and infrastructure investments. In particular, we believe that the Build-to-Rent segment can play an interesting role in the development of the UK housing market in the coming years.