Mubadala Investment Co., Abu Dhabi, invested in a new special situations strategy managed by Starz Real Estate, according to a news release provided by the sovereign wealth fund.
Mubadala is the anchor investor in Starz Orion Capital, a strategy that encompasses real estate lending and investment opportunities across Europe. Investments will span whole, senior, mezzanine, bridge, rescue or preferred equity financing for refurbishment or redevelopment, and it will also support the acquisition of distressed debt and nonperforming loans, and the acquisition of real estate securities made up of REITs, commercial mortgage-backed securities and other real estate debt securities, the news release said.
The size of Mubadala's commitment was not disclosed. Starz expects an additional round of investment from other investors to increase the strategy's capitalization by €300 million ($327 million), the release said.
"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," said Khadija Benzit, head of Europe for Mubadala's real estate platform, in the release. "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."
Mubadala was also the anchor investor for the Starz Zenith Capital fund with an investment made in December 2021. The strategy originates middle-market commercial loans of between €15 million and €100 million.
Further information was not immediately available.
Mubadala Investment Co. has $276 billion in assets, invested across multiple sectors and asset classes. Starz is a commercial real estate lender focused on middle-market loans throughout Europe. Its AUM was not available.
