Starz Orion Capital has been launched by pan-European commercial real estate lending platform, Starz Real Estate (Starz) and Abu Dhabi-based Mubadala. The fund is said to be a ‘special situations fund’ and Starz anticipates an additional round of investment to expand the fund’s capitalisation by $327mn, which is said to reflect the firm’s confidence in the fund’s ability to maximise a range of varied new opportunities.
The fund’s strategy is said to encompass a wide range of real estate lending and investment opportunities targeted across Europe including whole, senior, mezzanine, bridge, rescue financing or preferred equity financing for refurbishment/redevelopment.
It will also support the acquisition of distressed debt and non-performing loans; and acquisition of real estate securities comprising REIT’s, CMBS, and other real estate fixed income securities, the firm added.
On the new venture, Starz Real Estate CEO David Arzi said, “We are pleased to launch Starz Orion Capital, which represents a significant milestone in our journey and our second venture with Mubadala. As market dynamics continue to evolve, the fund is well-positioned to provide flexible, tailored and timely solutions to meet the ever-changing needs of real estate investors and developers, building on our strong track record and what has been an exciting period of growth for the business.”
This is the second venture between Starz and Mubadala, with Mubadala providing the anchor investment for the Starz Zenith Capital Ltd fund in December 2021. Starz Zenith Capital Ltd originates middle market commercial loans between $16mn and $109mn, with circa $545mn already originated.
Commenting on the investment, Khadija Benzit, Head of Europe in the Real Estate platform at Mubadala added, “We are delighted to extend our partnership with Starz Real Estate, as we continue to increase our exposure to alternative investments, including in private credit, to achieve stable financial returns. With the current market environment, private credit is playing a bigger role in supporting real estate players, and we’re excited to be supporting the fund across Europe.”
