Real Estate Lending
Our strategic advantage in real estate lending
Arrow’s proprietary strategy in the lending sector focuses on secured credit opportunities within the living sector across its European geographies. By offering full-life-cycle real estate lending solutions, Arrow addresses the capital needs of the real estate sector with a flexible approach tailored to deliver market-leading, risk-adjusted returns. Embedded specific ESG considerations ensure responsible decision-making throughout the process.
Lending Strategy
Arrow targets proprietary, secured credit opportunities specifically within the living sector, believing its flexible approach is well-suited to meet the evolving capital demands of the real estate market. The strategy is designed not only to solve financial needs but also to provide consistent, market-leading risk-adjusted returns with ESG considerations at the forefront of every decision.
Market Opportunity
The European real estate sector presents attractive financing opportunities for high-quality borrowers, especially given the current retreat and regulation of banks. Supportive macro tailwinds in the living sector boost demand for new developments and refurbishment projects. Moreover, a high base rate passed on to borrowers and lower loan-to-value ratios contribute to the attractiveness of the returns.
Platform and Track Record
As a leading pan-European asset manager, Arrow boasts a significant track record in private credit, lending, and real estate. With seven specialised real estate and lending platforms, Arrow ensures strong sourcing and execution capabilities, backed by stringent credit discipline.
Competitive Advantage
Arrow’s local sourcing and strong relationships enable differentiated on-the-ground origination capabilities. Its senior management team, with over 20 years of experience, and a differentiated offering position Arrow as a one-stop-shop for borrowers throughout the entire lifecycle of real estate projects.
Our point of view
In residential real estate, Europe presents strong opportunities for asset-backed lending, benefiting from long-term housing shortages and net migration dynamics.