Insight Investment, a UK institutional fund manager, has entered into an advisory relationship with DTZ Investment Management that will enhance itscommercial real estate loans capability, the firm says.
Insight, which has £255 billion (€299 billion) of assets under management across various asset classes, says it has seen significant demand for real estate loans from investors.
Adrian Grey, head of fixed income at Insight, says: “Institutional investors already play a significant role funding commercial real estate in the US. We expect a similarly thriving market will evolve in Europe. Institutional clients need yield. It is our belief the best risk-reward trade-off is found in illiquid credit.”
The reduction of the appetite and capacity of the banking sector to finance real estate projects has created an opportunity for institutional investors.
Under the terms of the agreement, DTZ will assist Insight in the due diligence process enabling Insight, which is owned by BNY Mellon, to access a broader spectrum of loans. DTZ will also provide Insight with data and property market views from its international research teams.
Insight has also appointed Robert Peto, currently chairman of DTZ Investment Management, to its investment committee.
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