Hermes relaunches U.K. real estate debt fund, holds £1b close

Hermes Investment Management has announced the relaunch of its U.K. real estate debt fund, widening its investment focus.

The Hermes Real Estate Senior Debt Fund will continue to focus on well-structured private loans on U.K. commercial real estate, but is widening its target investment opportunities to include all property asset classes across the breadth of the United Kingdom. The previous fund focused exclusively on retail, industrial and office properties in London and southeast England.

The relaunch comes as the fund announces its first three real estate debt deals, all completed under the original fund criteria, including loans on two retail assets in southeast England and a primary town center retail asset in southwest England. The deals reflect loan-to-value ratios of around 60 percent to 65 percent, with loans over a period of three to six years.

The properties include a pedestrianized shopping precinct with a diverse income base including re