Banor Capital, two new funds and target to 700 million

The strategy remains to acquire real estate assets and mortgage loans with the aim of financing the development of new real estate projects through subordinated debt instruments. With a funding target - on new funds opening in 2026 - of between EUR 600 million and EUR 700 million.

After a partial reopening - for a total funding of EUR 280 million - the pipeline of real estate transactions of the second Banor Special Situations II fund is growing, with five transactions underway (for EUR 130 million already invested) and three in progress, concentrated on key markets: the UK, Spain and Italy.

"In the past two years," explains Lorenzo Guidi, portfolio manager of the Banor Capital Special Situation I and II funds, "we have completed seven transactions and deployed 70% of the capital raised. By the first half of 2026, we will have deployed it all. Currently, there are three ongoing activities. The first is a preferred equity transaction of around EUR 40 million to support the purchase, investment programme and subsequent management of an existing portfolio of hotels in the UK (total assets of around EUR 300 million). These are, in total, eight facilities, distributed between London and the 'regional' area, all of small to medium size with a medium-high positioning. A great opportunity if one considers that the size of the structures facilitates an eventual exit strategy. The second transaction concerns mezzanine financing for the construction of a 600-bed student house near Madrid, for a total of EUR 10 million. The third concerns Italy, a preferred equity investment of approximately 15 million to finance the acquisition and development of a traditional residential complex (construction, fractioning and sale of residential units) in Florence. A choice, that of the Tuscan city, was not accidental. "Florence's residential market is relatively small but dynamic. There is a strong demand, especially international, for a new product - technological, energy efficient, surrounded by greenery - and a great shortage of supply, with fewer operators able to satisfy it'.

For the second half of next year, Guidi added, "we are working on two new projects: one will be a third fund (Banor Special Situations III) focused on the same strategy as the previous fund II, and the other dedicated to senior debt fund instruments, for an overall funding target, on both, of between EUR 600 and 700 million". For Guidi, the strategic asset classes remain residential, student housing and hospitality.

"In recent months," Guidi concluded, "market uncertainty has slowed financing and acquisitions but has offered us investors interesting opportunities, albeit more selectively. We remain optimistic in light of the limited supply of bank financing for real estate".