LONDON – 7 Jan. 2022 – Global law firm Greenberg Traurig, LLP advised Linus Digital Finance AG (Linus), an alternative commercial real estate lender, on the structuring of Luxembourg private debt funds and securing a €183 million limited recourse, revolving funding line from Bain Capital Credit (Bain) and a German bank. Linus reported that the move will enable it to further grow its private funds platform and real estate lending activities in Europe.
The funding line will be used by one of the debt funds, which will issue notes to Bain and the German bank, the proceeds of which will be used to make loans to commercial real estate investors and developers. The funding line may be used across Europe, starting with Germany and the UK. The first loan to be made using the funding line is scheduled to close in January 2022. The other debt fund will make or acquire real estate loans without using the funding line.
The Greenberg Traurig team comprised lawyers resident in the firm’s London and Berlin offices. The London team was led by Shareholders Partha S. Pal (Real Estate Finance) and Ben Eaton (Tax) and included Associates Priyanka Verma, Faheem Ahmed, and Calum Young. The Berlin team was led by Shareholders Anika Mitzkait (Finance) and Kati Beckmann (Finance/Private Funds) and Local Partner Claudia Stremel (Tax) and included Associates Peter Zingel (Corporate/Private Funds) and Paul Renger (Finance). Luxembourg law advice was provided to Linus by Arendt & Medernach and Jersey law advice by Bedell & Cristin.
Commenting on the transaction, Pal stated, “The funding of alternative commercial real estate lenders is evolving. While the first generation of alternative lenders used unleveraged or leveraged structures with full sponsor recourse, the next generation is using leverage in more creative but controlled ways. Transactions like this can allow alternative lenders to increase their capacity to originate loans. We congratulate the Linus team on this achievement and are delighted to have supported them in achieving this significant step in the development of their business.”
Beckmann further stated, “The Luxembourg debt fund platform implemented should enable Linus to provide investors with the ability to invest in leveraged and unleveraged real estate debt. We are excited to be a part of this.”
About Greenberg Traurig: Greenberg Traurig, LLP (GT) has approximately 2,300 attorneys in 40 locations in the United States, Latin America, Europe, Asia, and the Middle East. GT has been recognized for its philanthropic giving, diversity, and innovation, and is consistently among the largest firms in the U.S. on the Law360 400 and among the Top 25 on the Am Law Global 100. The firm is net carbon neutral with respect to its office energy usage and Mansfield Rule 4.0 Plus Certified. Web: www.gtlaw.com