Credit Suisse targets European housing in new partnership

Bloomberg

Credit Suisse Group AG has become the latest lender to bet on Europe’s booming rental housing sector.
The Swiss bank’s asset management arm is teaming up with real estate investor Mark to acquire and manage residential properties in city centers, according to a statement. The Doma venture seeks to raise an initial 350 million euros ($414 million).
The partnership will first target a portfolio of single homes and small apartments across Germany and the Netherlands, where it already manages about 700 homes, according to the statement. Doma eventually aims to build a Europe-wide portfolio worth around 1 billion euros.
“Residential for rent has demonstrated its resilience throughout the pandemic,” said Josip Kardun, Mark’s chief investment officer, who also heads Doma. “There is a major untapped opportunity in privately-owned smaller residential assets in prime urban locations.”
Institutional investors are cashing in on a chronic housing shortage across Europe that’s boosting demand for rental housing among young people and families. Lloyds Banking Group Plc plans to become one of the largest private residential landlords in the UK, while Australian bank Macquarie Group Ltd. is planning to invest more than $1.4 billion into rental housing there. M&G Real Estate is also expanding its presence in the market, making its first deal in Germany’s private rented sector by financing apartment construction near Frankfurt, the asset manager said.
“Credit Suisse Asset Management has had a long-standing experience investing in residential sector in Europe, both directly as well as indirectly through a multi-manager approach,” the firm said in a statement. The team has built up exposure to residential real estate globally and focused mainly on mid-price and affordable markets.

Credit Suisse to lose read role on Olam Food London IPO
Credit Suisse AG has dropped from the roster of lead banks on an Olam International Ltd. unit’s planned London initial public offering after turning down a loan request.
The Swiss bank was set for a top role in Olam Food Ingredients’ London IPO as recently as August, alongside banks including Citigroup Inc. and JPMorgan Chase & Co., said the people, who asked not to be identified as the information is private.
Credit Suisse decided not to participate in loan facilities Olam raised that month, the people said. The bank has lent to the Singapore-based agri-business firm in the past, one of the people said.
The current lineup of lead banks for OFI’s London listing includes Citigroup and JPMorgan as well as recent addition HSBC Holdings Plc and does not feature Swiss lender, they said.
Deliberations for the London IPO are ongoing, the people said. Credit Suisse continues to have a relationship with Olam and could still end up with a role on the deal, the people said. Representatives for Citigroup, Credit Suisse, HSBC, JPMorgan and Olam declined to comment.
Credit Suisse has been stepping up its risk oversight globally after the twin hits of the Greensill Capital and Archegos Capital Management scandals.
The lender has shaken up its top management, naming Rafael Lopez Lorenzo as chief compliance officer this month and appointing David Wildermuth as the chief risk officer in July.