New Mexico pension commits $70m Quadrant debt fund

The Atlanta-based real estate manager is gathering $700m for its 11th fund and expects to hold a first close soon.

Quadrant Real Estate Advisors has attracted a $70 million commitment from Public Employees Retirement Association of New Mexico to its Quadrant Enhanced Debt Fund, reports PDI sister title Real Estate Capital .

As revealed by  REC in July, the specialist real estate debt manager is seeking to raise $700 million by mid 2016 and will hold a first close imminently.

Quadrant's 11th closed-end, private real estate debt fund will originate fixed-rate first mortgages for the acquisition, refinancing and recapitalization of core commercial real estate assets across the US. The firm will securitize some loans through the commercial mortgage-backed securities (CMBS) market, selling off the senior, lower risk classes and retaining the higher yielding junior ones.

The Atlanta-based company, which has $6 billion of commercial real estate assets under management, invests in the UK and Australia as well as the US.

In the last quarter of 2015 it has closed a clutch of deal in the UK, including a £24 million, six-year facility to US investor Newworth for the acquisition of 1 Alie Street on the eastern edge of the City of London and a £30.75 million loan for the redevelopment of an office building in Illford, East London, called Valentine's House, as residential.

In September, Quadrant took a £35 million mezzanine participation at a 750 basis points margin in a £147 million whole loan written by Lloyds bank for BMO's purchase of a retail park in Rotherham.