Strand Hanson advises Tessin Nordic on 600m SEK facility

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

Tessin is aSwedish non-bank lender within the Nordic real estate market offering financingto real estate companies through private, professional and institutionalinvestors. Since 2014 Tessin has facilitated approx. SEK 6bn to over 550 realestate projects.

Pollen Street isa purpose led and high performing private capital asset manager. Founded in2013, Pollen Street is an independent, alternative investment managementcompany headquartered in London, and with offices in the US. It invests incredit and private equity strategies focused on the real estate, financial andbusiness services sectors.

Strand isdelighted to be a part of this successful transaction matching a leadingnon-bank lender with the source of capital needed to continue to fulfil itsambitions in the Swedish RRE sector. Strand Handson debt advisory teamcontinues to remain busy and looks forward to announcing further deals in duecourse.

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

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

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

CEO ofTessin, Heidi Wik said:

“Theagreement, facilitated by Strand Hanson, is a game changer for Tessin, as wehave secured long-term capital to be deployed into Swedish residentialdevelopment projects. The total lendable capital over the facility periodamounts to at least SEK 1.5 billion, which will strengthen our position as theleading non-bank lender within Residential Real Estate.  

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

InvestmentDirector of Pollen Street Capital, Ethan Saggu said:

“We arepleased to close the transaction with Tessin which was facilitated by StrandHanson. Tessin has significant potential in the market, as the company is ledby a knowledgeable and experienced management team.

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