13 February 2017
One of the UK's newest commercial property debt providers has completed its first Scottish deals seven months after launching in the real estate finance market.
Edinburgh-based Fairfield Real Estate Finance has completed debt refinance packages for two Scottish based businesses with a combined property value of £31m.
The largest deal is a debt refinancing for a £21 million joint commercial property portfolio owned by David Cameron of Upland Developments and Bruce Linton of James Keiller Estates and includes the Clydesdale Bank headquarters in Glasgow, as well a mixed range of three other sites in Glasgow, Edinburgh and Inverness.
In addition, Fairfield has secured a debt package for a new hotel in Glasgow on behalf of the Curo Property Fund LLP. The £9.5 million hotel in West Campbell Street is operated as a Hampton by Hilton and opened in May 2016.
The deals are the first Scottish investments for the US backed company which is committing to an ambitious growth plan which includes increasing its Edinburgh-based staff and providing over £300m of debt funding to new projects by the summer of 2017.
Colin Duncan, Real Estate Director of Fairfield commented;
"We are in the fortunate position of having the financial backing of Oaktree Capital Management. This gives us the ability to offer something different to the commercial real estate market at the moment."
"We are very comfortable that our first Scottish deals offer good long term prospects. In the case of David Cameron and Bruce Linton, they are both highly experienced people responsible for a mixed portfolio with multiple tenants and a strong lettings history."
"The hotels market is interesting to us as we are very comfortable lending into hotels with operating agreements which are very much in keeping with financial models in the US."
"Our funding is an attractive option for low equity borrowers with active asset management opportunities that create value. Some mainstream borrowers are stagnated due to lack of acquisition, development or refurbishment capital as cashflow is swept to debt repayment. Our refinancing of existing loans allows additional debt for acquisitions and capital spend or even potential for some cash out to reflect past successes."
"We have a number of other deals in the pipeline and are looking forward to working with many more clients across the UK and Ireland in the months and years ahead."
Fairfield was established in May 2016 and has already completed a number of commercial property deals in Ireland however the business will be based out of Edinburgh and has recently opened its first UK office in Edinburgh's Melville Street for four full-time executives.
About Oaktree Capital Management L.P.
Oaktree is a leader among global investment managers specializing in alternative investments,
with $100 billion in assets under management as of September 30, 2016. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree's website at http://www.oaktreecapital.com/.
Colin Duncan Fairfield Real Estate Finance, 0131 243 8277 / 0747 506 0012
Kirsten Speirs, KDMedia Ltd, 0131 337 6232 / 07810434204