Cynergy Bank and Delancey target €1.7b in UK real estate debt

Cynergy Bank and Delancey have formed a strategic lending partnership with the goal of originating up to £1.5 bn (€1.7 bn) in property-related debt transactions over the next three years.

Delancey

The non-exclusive, multi-year joint venture (JV) will focus on senior and whole loans ranging from £10 mln to £80 mln (€11.5 mln to €92.1 mln), funded by Cynergy Bank alone or jointly with Delancey.
Delancey will lead the sourcing and structuring of deals, leveraging its extensive network. The JV will target financing opportunities for development, transitional, and investment assets from high-quality sponsors across London and other core UK regional cities. A strong pipeline of opportunities has already been identified in sectors including office, industrial, retail, living, mixed-use, self-storage, and healthcare.
This JV represents Cynergy Bank's first sector-specific collaboration with an alternative lender and a key step in its strategy to expand access to UK real estate lending products and asset categories. For Delancey, it expands their debt platform and capabilities in delivering tailored capital solutions at scale.
The partnership was established following a competitive selection process advised by JLL, Cynergy Bank's financial advisor.
Martin Farinola, head of Real Estate Debt Strategies at Delancey, commented: “This is a further example of the diverse capital solutions we can offer to investors and borrowers at a time when they are seeking new ways to access attractive risk-adjusted opportunities across the capital stack. This partnership will accelerate the scaling of our debt platform while providing Cynergy with a new route into the UK real estate debt market. With our active deal flow, extensive sponsor network, and comprehensive equity underwriting approach, we are confident in delivering high-quality loans at scale that meet Cynergy Bank’s underwriting standards and the growth of Delancey's investment products.”
Ravi Sidhoo, managing director at Cynergy Bank, said: “As one of the UK’s longest established independent private real estate managers, Delancey has an unrivalled network that will drive origination, unlocking new opportunities for Cynergy Bank within the UK real estate market. With over £55 bn of UK real estate loans maturing in the near term, we believe there is a compelling lending opportunity - driven by traditional banks retrenching, re-based equity values, anticipated interest rate cuts, and recovering transaction volumes.”
Ian Guthrie, senior managing director at JLL, added: “This arrangement is the first lending partnership of its type involving a UK challenger bank and a non-bank lender and follows an extensive process, led by JLL on behalf of Cynergy Bank, to identify a strategic partner closely aligned to the bank’s strategic objectives. We’re confident this collaboration will deliver both significant value and innovative financing solutions that meet the diverse needs of today’s real estate investors, developers and operators”.