At a glance
- The fund will mainly write first-ranking whole loans of €25 million to €75 million against property in Germany, France, the UK, Spain, the Nordics and Benelux, targeting logistics, residential, student housing and prime office.
- The 5% to 7% distribution target and 6% to 7% net IRR target leave credit losses on the €25 million to €75 million loans as the main variable for fund selectors to underwrite.
- Clemens Schäfer, global head of real estate for Europe and Asia-Pacific, said predecessor fund EPDF I "significantly outperformed its targets."
Deutsche Asset Management raised €120 million (£99.5 million) at the anchor close of European Property Debt Fund II, the second vintage in its European property debt series, Alternative Credit Investor reported.
The fund will mainly write first-ranking whole loans of €25 million to €75 million against property in Germany, France, the UK, Spain, the Nordics and Benelux, targeting logistics, residential, student housing and prime office.
The 5% to 7% distribution target and 6% to 7% net IRR target leave credit losses on the €25 million to €75 million loans as the main variable for fund selectors to underwrite.
Clemens Schäfer, global head of real estate for Europe and Asia-Pacific, said predecessor fund EPDF I "significantly outperformed its targets." The firm will keep marketing to institutional investors in Europe, the Middle East and Asia over the next 18 months.
Income carries nearly all of the target return
Annual cash distributions versus overall net IRR target, European Property Debt Fund II
Cash distributions
5-7% a year
Net IRR
6-7%
Nearly all the target return is loan income; credit losses are the variable.
Reported by the Fund launches & raises desk from Alternative Credit Investor. Published . Corrections