Debt deleveraging by the lenders is only at the start of what will be a lengthy process. Nevertheless since successfully structuring the UK’s first "loan to own" transaction in August 2009, Ellandi has purchased more single loans than any other UK focused investment manager.
The strategy is usually to use the debt instrument to achieve ownership of the underlying real estate. This can be characterised as aggressive and detrimental to the borrower; however in every instance, bar one, we have successfully restructured the loan which has led to payments to the borrower, even where there is, on the face of it, no value to their equity.
We have now closed two deals with Ellandi and have been impressed, not only with their cradle to grave approach to acquisitions, but their on-going commitment to acheiving the business plans.
Being experienced equity investors, we are delighted to be working with a new generation of operating partners.
Ric Lewis, CEO, Tristan Capital Partners
Our focus to date, has been on loans secured against retail assets, however going forward we will be targeting other asset classes where we feel the team can add value, or we are happy to bring in specialist asset managers, as appropriate.