The WLR Cardinal Mezzanine Fund (WLR Cardinal) is a joint venture between Cardinal and WL Ross & Co. (WLR). WLR Cardinal provides subordinated real estate debt financing for investment, development and loan refinancing. WLR Cardinal is the only long term and fully capitalised provider of real estate mezzanine finance dedicated to the Irish market. The typical loan size will be between €5 million and €50 million per single transaction with the ability to provide co-investment for larger investment amounts.
Real Estate Targets
- Investment assets: Financing of income producing assets
- Development: Financing of commercial and residential development opportunities and dependant on fundamentals, the financing of speculative development
- Refinancing: Financing of individual loans from NAMA and other short term acquirers of Irish real estate loans
Examples of the type of transaction entered into by the WLR Cardinal Fund (the Fund) to date include the refinancing of a portfolio of mixed use real estate assets in conjunction with the original borrower and the refinancing, in conjunction with a senior lender and a significant Irish real estate developer, of a portfolio of complete and part complete residential developments in a prime Dublin location.
The mixed use assets portfolio income is diversified across commercial, residential and government tenants and a number of asset management initiatives will be supported by the Fund to enhance portfolio performance.
The payment terms include a mix of an annual coupon and deferred payment-in-kind (PIK) interest over 3 and 5 year terms.