Monday 18 November 2019

€500m Cantor Fitzgerald fund targets Ireland

Roisin BUrke

Wall Street giant Cantor Fitzgerald's new Irish property fund will seek to raise €500m, tapping its Irish, European and US investors to back distressed asset buys here.

Fundraising for the Cantor Fitzgerald Irish Real Estate Fund kicks off this month, with a stock market listing to follow further down the line.

The aim is to appeal to the bond titan's fixed income client seeking to invest in something stable but higher yielding than government bonds.

Cantor recently recruited ex-Lloyds execs Pat Murphy and Kiron Nath, who have extensive experience of working out distressed assets in Ireland through their work with Bank of Scotland's interests here over the past two years.

The duo will start buying in September, targeting prime yield income generating commercial and residential property in Dublin but also good yield prospects in Cork, Galway and Limerick, generating underlying income of €300,000-€500,000.

They will seek to raise an initial €100m with a final target of €500m. Investor road shows begin in mid-July, targeting private equity, family wealth funds and pension funds.

It will seek off-market buys where it can, offering the prospect of ready cash and a quick sale close to lever price advantage, offering the prospect for the seller of avoiding expensive receivership, holding or open sale costs.

Assets and individual property loans are the target so IBRC and Nama loan books are not on the radar.

Activity in the Irish property market continues to be brisk. Israeli tycoon Igal Ahouvi plans to spend up to €20m more here, it is believed. Funds like IPUT and Irish Life are seeking acquisitions.

Known as a global bond trader, including as a primary trader of Irish government bonds, Cantor is now moving into wealth management in a serious way globally.

Irish Independent

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