Real estate manager Empira Group planning to raise €500m for its fourth debt fund.
The manager said the newly launched Empira Real Estate Finance Fund IV, “offers an innovative joint-venture-approach” and has already issued its first loan.
Lahcen Knapp, CEO of Empira Group, said the product combines mezzanine capital with relatively low current interest rates and a share in the financed property.
Fund IV will issue subordinated mezzanine loans and is targeted at developers in Germany, Austria, Switzerland and the Benelux region that are looking to purchase land or properties to develop residential or commercial projects.
The fund seeks to acquire a 50% share in financed developments with a minimum total investment volume of €150m.
“Institutional investors benefit from the current interest and at the same time can participate in the value creation, Knapp said.
“Developers, in return, receive attractive mezzanine capital and thus an alternative to conventional bank financings.“