Origin Capital announces new lending relationship with Kvika
Origin Capital has entered into a new lending relationship with Icelandic bank Kvika in a move set to increase the availability of senior debt finance for Irish commercial property borrowers.
Under the arrangement, Origin Capital will originate, structure and manage loans ranging from €2m to €15m, which will be funded by Kvika.
The partnership is designed to provide Irish borrowers with access to flexibly structured and competitively priced senior debt, combining Origin’s on-the-ground origination capability with institutional capital from the Icelandic lender.
Kvika Group’s parent company, Kvika banki hf, is an investment-grade rated bank with a strong focus on real estate and corporate lending.
Rated by Moody’s, the bank provides the capital base behind the Group’s property-backed lending activities.
In the UK, Kvika operates through Ortus Secured Finance, which also has some experience in the Republic of Ireland, having undertaken a limited number of transactions in recent years.
The new partnership marks a more formal and scaled approach to the Irish market.
By working with Origin Capital, Kvika aims to expand its lending footprint here in a measured manner, leveraging the Dublin-based firm’s borrower relationships and local market expertise.
The relationship is already up and running, with more than €30m in transactions completed to date.
The parties said this early activity demonstrates alignment between the two organisations and growing momentum in the market.
Ross Metcalfe, chief executive of Origin Capital, said the partnership would channel high-quality institutional capital into the Irish commercial real estate sector.
He said the combination of Origin’s local knowledge and Kvika’s balance sheet would provide borrowers with greater certainty of execution.
Under the arrangement, Origin Capital will originate, structure and manage loans ranging from €2m to €15m, which will be funded by Kvika.
Jon Salisbury, chief executive of Ortus Secured Finance, said the deal would allow Kvika to scale its Irish lending operations in a “controlled and disciplined” way, building on its existing but limited activity in the State.
Origin Capital said it will continue to focus on senior secured lending against core and transitional commercial real estate assets, citing ongoing demand for alternative funding sources in the Irish market.
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