Corporate overview
ICG was founded in 1989 and is a global specialist asset manager with approximately $65.2bn of assets under management, 495 employees and consultants across 15 countries worldwide as at 30 June 2021. ICG was established to capitalise on opportunities in the then-nascent European subordinated debt and intermediate capital markets, and over the past 32 years, has invested over £19bn in this market, becoming one of the market leaders in this asset class.
ICG Real Estate is ICG’s real estate platform, with $7bn1 of assets under management investing across both debt and equity real estate strategies. Our debt strategies include partnership capital (providing whole loans, mezzanine, and preferred equity to support value add business plans), senior debt, sale and leaseback and residential development finance. Our equity strategies include sale and leaseback, value add and opportunistic equity and infrastructure equity. We have also recently added a real estate debt capability in Australia.
All strategies have a sustainable approach, including a focus in the debt strategies on investments which help to mitigate climate change through ICG’s green loan framework.
ICGRE is one of the largest and longest established independent CRE debt managers in Europe.2 The team comprises 41 people, including 32 investment professionals across its five investment strategies and 12 professionals responsible for credit risk manage- ment, portfolio monitoring and fund operations.
The management team have an average of almost 30 years’ experience in direct property, banking or investment management and the co-heads of the ICGRE team, Kevin Cooper and Martin Wheeler, have worked together since 1998.
1 As at 30 September 2021.
2 ICG Real Estate based on analysis of independent debt managers identified in Real Estate Capital Top 30 European Lenders Report, June 2021.
Investment principles & strategy
Underpinned by a partnership-based approach to investing and reputation for delivery, ICGRE supports property companies, developers and institutions in realising their business plans and investment objectives.
ICGRE directly sources its own investment opportunities, originating, structuring and managing all investments in-house. We take a selective approach to investing, with our risk-averse underwriting and investment decisions based on our in-depth understanding of property occupational and capital markets fundamentals.
In everything we do, we invest on property fundamentals, focusing on:
- Sub-market supply/demand analysis
- Occupier suitability
- Sustainability of cashflow
- True net operating income
- Liquidity of underlying real estate on exit.
OUR STRATEGIES
Partnership Capital
- Whole loans, mezzanine and preferred equity up to 100% of purchase price
- Flexible partnership approach
- All sectors, including alternatives and operational assets
- Focused on value-add projects from £20m–150m.
Senior Debt
- Fixed-rate loans up to 65% LTV; loan terms from three to 20 years
- A primary focus on mid-market lending and investing across the UK regions
- Preference for diverse income streams and value-add business
- Loan commitments from £10m–100m across core and alternative property sectors.
Development
- Whole loan development
- Flexible approach can accommodate dynamic business plans
- Focus is on residential lead schemes with planning
- Loan size £25m–250m.
Sale and Leaseback
- Acquisition of mission-critical real estate from corporates
- Monetises 100% of the corporate’s real estate value in a tax efficient manner
- Corporate maintains full operational control of its real estate
- Pan-European, cross-sector
- Assets acquired from €40m–400m.
Value-Add and Opportunistic Equity
- Opportunistic and value-add transactions
- Focus on sectors with strong tailwinds (for example residential, logistics, etc)
- Pan-European coverage
- €50m–200m equity per investment/programmatic joint-venture
Strategic corporate development
ICGRE, the real estate division of ICG, is focused on the UK and European CRE debt and equity markets, with $5.9bn assets and commitments under management, of which $1.8bn relates to the Real Estate Senior Debt strategy. The co-heads established Longbow Real Estate Capital in 2006 with the primary objective of becoming the leading independent provider and manager of debt finance to the CRE sector in the UK and Europe. ICG acquired Longbow Real Estate Capital in 2011 to create ICGRE and, in 2021, ICGRE was ranked the sixth largest real estate debt manager globally.
ICGRE comprises 44 people, including 32 investment professionals across its five investment strategies and 12 professionals responsible for credit risk management, portfolio monitoring and fund operations. The Real Estate Senior Debt investment team is led by David Mortimer, along with two senior originators, who collectively have an average of 16 years’ experience in direct property, financing or investment management across the UK. They are further supported by two other members of the senior debt investment team who support the execution of transactions, as well as the eight-member portfolio and risk management team.
Performance verification
As at 30 June 2021, ICGRE had made 212 investments, providing about £9bn of capital across its core strategies of senior debt, partnership capital, residential development finance and sale and leaseback.
COMPLIANCE STATEMENT
The information contained herein is for the sole purpose of providing general information to institutional investors about Intermediate Capital Group (ICG). Certain information provided herein sets out general views of ICG regarding certain property markets and types of property therein. No representation is made concerning the accuracy of the information compiled herein, and no guarantee or assurance is given that any forecast or opinion in these materials will be realised. For the avoidance of doubt, the information contained herein is not investment advice and may not be construed as the promotion or marketing of any services or financial product sponsored or provided by ICG. The regulated activities of ICG are authorised and regulated by the Financial Conduct Authority in the United Kingdom
