Luxembourg-headquarteredAeriance Investments is launching a closed ended specialist debt fund to offer access to bridging loans for residential property transactions in London.

OREL aims to take advantage of what it sees as a current dislocation in the short term real estate lending sector in the UK and will provide two to three year financing to experienced property entrepreneurs and high net worth individuals for senior and junior financings in the London area.

Typical assets will include high end residential properties in prime locations such as Belgravia, Knightsbridge and Mayfair, which can command values of £20 million (over $30 million) and which have shown resilience throughout the economic downturn.

Aeriance hopes to double the unleveraged fund from an initial £100 million with commitments from a range of UK and international investors and is hoping to deliver a net return of 10-12 per cent per annum.