DWS has closed a €38.8m whole development loan to finance the construction of a Spanish build-to-rent (BTR) residential property.
The funding, made on behalf of the manager’s European Property Debt Fund, will support the development of an affordable housing scheme comprising 315 residential units located in Madrid’s Arganda del Rey.
This transaction marks the fourth deal the DWS European property debt team has completed on behalf of the fund which focuses on building a subordinated (junior) loan portfolio ”secured by high-quality pan-European core/core plus real estate” targeting institutional investors across Europe.
Alexander Oswatitsch, head of European real estate debt at DWS, said: “Despite the challenging current market situation, demand drivers in Spain are surpassing European levels making this an attractive deal to further diversify the fund in line with strategy.
“In addition to this whole development loan, DWS remains active and has secured a range of deals on both the senior and mezzanine fronts with residential portfolios including co-living assets and logistics portfolios across continental Europe. We will continue to look for attractive opportunities in these resilient asset classes as well as high-quality next-generation offices.”
DWS’s real estate debt platform currently manages six European senior and junior strategies in the form of client mandates and as open-ended or closed-end funds, with a total volume of €2.6bn as of 30 June 2023.
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