Starz Unveils Special Situations Fund with Mubadala's Strong Backing

Starz Unveils Special Situations Fund with Mubadala's Strong Backing

By Emirates News Agency, 24 November 2023

Starz Real Estate (Starz), a leading pan-European commercial real estate lending platform, announced the launch of its special situations fund, Starz Orion Capital Ltd (the Fund).

The Fund’s anchor investor is Mubadala Investment Company (Mubadala), a prominent Abu Dhabi sovereign wealth fund.

Starz anticipates an additional round of investment to expand the Fund's capitalisation by €300 million, reflecting their confidence in the Fund's ability to maximise a range of varied new opportunities.

The Fund's strategy encompasses a wide range of real estate lending and investment opportunities targeted across Europe including whole, senior, mezzanine, bridge, rescue financing or preferred equity financing for refurbishment/redevelopment.

It will also support acquisition of distressed debt and non-performing loans; and acquisition of real estate securities comprising REIT’s, CMBS, and other real estate fixed income securities.

This marks the second venture between Starz and Mubadala, with Mubadala providing the anchor investment for the Starz Zenith Capital Ltd fund in December 2021.

Starz Zenith Capital Ltd originates middle market commercial loans between €15m and €100m, with circa €500m already originated.

David Arzi, CEO of Starz Real Estate, said, “We are pleased to launch Starz Orion Capital Ltd, which represents a significant milestone in our journey and our second venture with Mubadala. As market dynamics continue to evolve, the fund is well-positioned to provide flexible, tailored and timely solutions to meet the ever-changing needs of real estate investors and developers, building on our strong track record and what has been an exciting period of growth for the business. We are grateful for the support and partnership of Mubadala and are eager to grow this venture together.”

Khadija Benzit, Head of Europe in the Real Estate platform at Mubadala, commented, “Mubadala is delighted to extend our partnership with Starz Real Estate, as we continue to increase our exposure to alternative investments, including in private credit, to achieve stable financial returns. With the current market environment, private credit is playing a bigger role in supporting real estate players, and we’re excited to be supporting the fund across Europe.”

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