The fund will focus on stretched senior loans and subordinated loans with blended target returns in excess of 4%, secured against income producing, institutional quality assets, with a portion of the fund allocated to development funding. Targeting mainly transactions in Europe and the United States, investments are expected in the region of €50m - 250m per loan.
“This new mandate, alongside our €750bn European Senior loan fund, allows us to provide junior and stretched senior capital on large European and U.S. transactions.” said Andrea Vanni, Head of European Debt Investments at Deutsche Asset Management.
“This capital raise demonstrates the growing demand for real estate loans by alternative lenders and the strengths of our real estate platform,” said Clemens Schaefer, CIO and Head of Portfolio Management Real Estate, Europe at Deutsche Asset Management.
The new mandate will bring the total volume of Deutsche AM’s real estate debt business to €2bn as at 7 November, 2016.