Private Real Estate Lending Capacity Expands in Europe
Investors gain a new path for property funding as private credit platforms target €3 billion in new commercial real estate loans.
Updated on Oct. 21, 2026 in Commercial
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HSAM Europe is expanding its private credit platform, setting a medium-term target of €3 billion for real estate loans across Western Europe. This expansion includes a recent £12 million bridge loan for a 148-key hotel in Cheltenham.
Why it matters
The firm focuses on financing deals that fall outside traditional bank lending criteria, such as complex acquisitions or capital expenditure programs. By targeting specialized real estate credit, this strategy provides alternative funding access for property developers and investors.
HSAM Europe is targeting €1 billion to €2 billion in senior secured real estate loans over the next two years, with individual loans ranging from €10 million to €120 million. Borrowers face starting annual all-in costs of 6% with maximum loan-to-value ratios reaching 75%.
The players
HSAM Europe
An investment firm that provides private credit for real estate acquisitions and capital projects.
RoundShield
A European debt specialist acquired by HSAM to enhance its credit lending capabilities.
Banor Capital
An investment management firm that received a £12 million bridge loan for a hotel property.
The details
The platform provides flexible financing for acquisitions, lease-ups, and development exits, with loan terms spanning one to five years. The firm evaluates borrowers and assets across the capital stack to structure these loans. This approach allows the lender to serve projects that may not meet the strict requirements of standard bank lending institutions.
Timeline
HSAM acquired debt specialist RoundShield last year.
The firm plans to deploy €1 billion to €2 billion in loans over the next one to two years.
The €3 billion lending target is slated for the medium term.
Money Landscape
As traditional banking institutions face stringent capital requirements, private credit platforms are expanding to fill the financing gap. This shift marks a broader transition in commercial real estate, where non-bank lenders now play a critical role in providing capital for complex projects.
Commercial property developers and hotel operators may find alternative access to capital for refinancing or growth as these credit platforms increase their deployment. Borrowers should consult with a financial professional to evaluate the implications of 6% minimum borrowing costs versus traditional bank debt.
The takeaway
The rise of private credit signals a shift in how commercial properties secure funding when bank lending is unavailable. Borrowers should compare these flexible terms against their long-term cost of capital and discuss potential refinancing risks with a qualified financial advisor.
Further reading
For more on evolving financing strategies, explore our Commercial section.
Source note: This article includes information reported by Bisnow.
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