CAERUS Debt Investments AG was appointed as investment adviser to two major German institutional investors in the fourth quarter of 2014. CAERUS will advise them initially on the investment of a total of €350 million in senior collateralized mortgage loans with high loan-to-value (LTV) ratios, so-called whole loans.
Michael Morgenroth, CEO of CAERUS Debt Investments AG: “Widening our investment solutions to include whole loans will provide investors with access to attractive yields.
"As part of our investors’ portfolios, these make a noticeable contribution to achieving their internal target returns.”, he continued.
Together with the capital budgeted for junior and mezzanine loans, this means that the investment funds advised by CAERUS Debt Investments have entrusted a total of €420 million for investment in loans secured on real estate. The first three investments of funds from the individual clients, totalling €188 million, are already in place. The loans are secured both on individual properties and on real estate portfolios. Office space comprises the main use type, although mixed-use properties that include hospitality/leisure elements have also been financed.
Dr. Patrick Züchner, CIO of CAERUS Debt Investments AG: “For some time we have been noting considerably increasing demand for senior secured real estate loans, from a single source, for locations away from the top cities and use types outside the mainstream. This demand is not being adequately satisfied by the traditional market players. Individual clients advised by CAERUS have access to financing solutions for complex financing situations, for example in the area of larger portfolios.”