Investment firm KKR and Puma Property Finance have formed a joint venture that will see Puma and private credit funds managed or advised by KKR provide up to £500m in senior development and stabilisation loans to fund residential, build-to-rent and student accommodation schemes in the UK.
The companies will provide scaled access to the capital, with the three-year forward-flow partnership targeting loans of £20m to £75m in the UK living sector.
Puma’s specialist development lending team will be responsible for sourcing, underwriting and managing the loans on behalf of the joint venture, while KKR’s global credit platform will provide institutional capital, structuring expertise and investment committee oversight.
Read more: Private markets ‘regaining momentum’ as lower rates improve liquidity
The venture will combine Puma’s established origination platform with KKR’s scale, institutional structuring capabilities and global credit expertise. The platform will be supported by a senior credit facility provided by a major international bank.
Since its inception in 2012, Puma Property Finance has provided over £2bn of UK real estate-backed loans.The new partnership will enable Puma to expand its capacity in the £20m-plus loan segment, where it said demand for institutional capital continues to outpace supply.
Read more: Värde fuels YouLend US expansion with up to $225m facility
“We are pleased to work with Puma Property Finance to scale access to institutional capital in the UK residential development market,” said Anirban Ghosh, managing director at KKR.
“We believe this platform is well positioned to support experienced developers delivering much-needed housing across the country, combining Puma’s local expertise and origination capabilities with KKR’s global credit platform and disciplined underwriting approach.”
Read more: AlbaCore and MUFG launch European infrastructure debt platform
