Arrow Global secures $400m commitment from ADIA

Arrow Global secures a $400m commitment from Abu Dhabi Investment Authority (ADIA) for its European real estate lending strategy.

Arrow Global Secures $400m Commitment from ADIA | PBSA News
Zachary Lewy, Founder, CEO and Chief Investment Officer, Arrow Global

Arrow Global Group Capital Management (‘Arrow Global’) has secured a $400m commitment from a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA) for its European Real Estate Lending strategy. This expands the relationship between Arrow Global and ADIA, with an ADIA subsidiary also an existing investor in Arrow Global’s Opportunistic Credit strategy. 

Through its lending programme, Arrow Global’s investment team pursues a differentiated strategy of providing flexible financing solutions. All are tailored to investors and developers, backed by quality living real estate assets. 

The bespoke approach of Arrow’s Real Estate Lending strategy allows it to support investors and developers throughout their projects. This flexible investment approach aims to deliver attractive risk-adjusted returns across market cycles from a diversified and resilient portfolio and benefits from the attractive tailwinds of the underlying living sector.

In line with delivering attractive risk-adjusted returns, ESG considerations are built into all stages of the investment process to ensure a responsible approach to investing and alignment with international industry standards, such as the Principles for Responsible Investment (PRI) and the Global Real Estate Sustainability Benchmark (GRESB).

“This agreement with ADIA to commit to our flagship European Real Estate Lending strategy comes at an ideal moment for living sector assets.

“In a market that is looking to private credit lenders for capital, this is a prime opportunity to provide senior secured capital to borrowers delivering high-quality, liquid assets that are in short supply and high demand.”

Zachary Lewy, Founder, CEO and Chief Investment Officer, Arrow Global

Arrow owns 22 leading platform capabilities across Europe – including Maslow Capital – and has €95bn in servicing assets under management.

Arrow’s recent deals include the structuring of a £29m bridge loan to refinance a recently completed 35-flat residential development in London, a £13m redevelopment package for the conversion of a former police station in London into a 29-unit residential development, and a £129m loan for the development of a high-end 477 apartment complex in Manchester.

These deals formed part of a total lending volume of over €1.2bn in 2023. This has financed the development of over 18,000 units, spanning over 11,000,000 sq ft of real estate.

“Arrow Global’s European Real Estate Lending strategy is well-aligned with the market’s shift toward more flexible and reliable real estate financing solutions, and Arrow’s strong track record makes it an attractive investment opportunity.”

Mohamed Al Qubaisi, Executive Director of the Real Estate Department at ADIA

In August 2023, Arrow Global Group Limited fully acquired real estate finance provider Maslow Capital. The acquisition was set to strengthen its lending opportunities strategy and to complement its existing investment activities across credit and real estate.