FAP Group has changed its closed-ended real estate debt fund into an open-ended vehicle and expects to raise an additional €100m for the fund by the end of the year.
The real estate advisory firm said the €300m FAP Balanced Real Estate Financing I (FAP BREF I) fund, which was launched at the end of 2018, has been converted into an evergreen vehicle, adding that FAP BREF I’s total equity commitment is expected to rise to €400m by the end of 2023.
FAP BREF I allocates subordinated capital to existing properties, revitalisation projects and developments in Germany.
Hanno Kowalski, managing partner of FAP Invest, said the conversion from a structure with limited duration into an evergreen was incited by investor demand. “Several parties wished to remain invested in the fund and are planning to raise their equity commitments.”
Raphael B Wowra, senior investment manager of FAP Invest, said: “The market environment is volatile and classic lenders remain restrictive in their credit allocation. As a result, demand for alternative financing is set to rise again this year – and we prepared for it.”
Greenberg Traurig and VictoriaPartners advised FAP on the restructuring of the FAP Fund SICAF-SIF into a SICAV-RAIF. VictoriaPartners also advises on the fundraising for FAP BREF I.
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