A Berlin-based investment company has continued its expansion by establishing a presence in the UK.
LINUS Capital finances real estate projects with debt and mezzanine capital through its self-managed £320 million debt fund. The firm offers experienced private and institutional investors the opportunity to participate in these investments while always acting as an anchor investor, contributing at least 25% of the investment volume from its debt fund.
Driven by its success in Germany - LINUS has financed more than 40 real estate projects with capital greater than £450 million in only four years - the company is now exporting its unique business model to the UK.
The company’s new office will be based in London’s Mayfair and led by the two managing directors, Lukas Endl and Lee Abdul Sow.
Filling a gap in the UK market?
LINUS Capital will focus on investment opportunities of £5 to £50 million in Greater London and other major UK cities.
“The small to mid-market segment offers great opportunities for us and our co-investors, as we are filling a significant gap in the market. As established real estate financiers have paused lending activities in the UK due to Covid-19 and Brexit fears, there is a unique window of opportunity to scale our operations quickly,” Lee Sow explained.
“Our entrepreneurial approach combined with the ability to provide higher gearing than most other lenders gives us an edge in the market,” Lukas Endl added.
The two managing directors have extensive experience in the real estate and alternative investments sector and have already built up a broad network in the UK.
Lukas Endl studied Real Estate Finance at Cambridge University and has implemented projects in the sector for McKinsey. Before joining LINUS, Lee Sow worked for the financial sponsors team of Credit Suisse and for the high-yield credit team of Oaktree in London, leaving him well-acquainted with the credit market.
£100 million investments in 2020
For LINUS chief executive David Neuhoff, the UK market offers many opportunities. He said that, despite Brexit, London is still the number one capital market in Europe and one of the most important real estate markets globally.
“The city continues to attract substantial capital from investors across the globe. Even though the market is highly competitive, we see immense potential here. By leveraging the extensive on-site experience of our team, our lean structure and fast decision-making processes, we are able to provide financing within a very short timeframe – this is our key competitive advantage.”
In 2020, LINUS Capital plans to invest up to £100 million in the UK.