Strand Hanson, the leading modern merchant bank, is proud to have advised Tessin Nordic Holding AB (Publ) in arranging a 600m SEK credit facility. The facility, provided by Pollen Street , will allow Tessin to extend construction loans in the Swedish residential real estate (“RRE”) market.

Tessin is a Swedish non-bank lender within the Nordic real estate market offering financing to real estate companies through private, professional and institutional investors. Since 2014 Tessin has facilitated approx. SEK 6bn to over 550 real estate projects.

Pollen Street is a purpose led and high performing private capital asset manager. Founded in 2013, Pollen Street is an independent, alternative investment management company headquartered in London, and with offices in the US. It invests in credit and private equity strategies focused on the real estate, financial and business services sectors.

Strand is delighted to be a part of this successful transaction matching a leading non-bank lender with the source of capital needed to continue to fulfil its ambitions in the Swedish RRE sector. Strand Hanson debt advisory team continues to remain busy and looks forward to announcing further deals in due course.

 

Head of Debt Advisory at Strand Hanson, Daniel Arques commented:

“We are very proud to have been working with the leading Swedish non-bank lender in RRE space. The increased appetite for specialty lending within the institutional landscape meant that we received favourable terms with more than one lender to choose from. Following a review of various term sheets, it was clear that Pollen Street Capital and Tessin were a natural fit.

I believe that we will see many more transactions of this type, not just within RRE and in Sweden but across Europe as the strategic risk moves from banks into non-bank lenders plays out over the next few years.”

 

CEO of Tessin, Heidi Wik said:

“The agreement, facilitated by Strand Hanson, is a game changer for Tessin, as we have secured long-term capital to be deployed into Swedish residential development projects. The total lendable capital over the facility period amounts to at least SEK 1.5 billion, which will strengthen our position as the leading non-bank lender within Residential Real Estate. 

As a long-term, stable, and secure lender, we now have the capacity to guarantee loans to property developers who are ready to act when the market turns.”

 

Investment Director of Pollen Street Capital, Ethan Saggu said:

“We are pleased to close the transaction with Tessin which was facilitated by Strand Hanson. Tessin has significant potential in the market, as the company is led by a knowledgeable and experienced management team.

They have a strong market presence and relationships with local developers, which has been gained over their SEK 6bn of lending to date. We look forward to the partnership and delivering new affordable housing across the main Swedish hubs”.