Generali Real Estate has launched a second commercial real estate debt fund to invest across Europe.

The manager said the Generali Real Estate Debt Investment Fund II (GREDIF II) has a target size of €1bn and will invest in senior debt loan financing opportunities, with a loan-to-value of up to 60% and variable rates.

GREDIF II – categorised as an Article 8 product under the EU Sustainable Finance Disclosure Regulation – will mainly invest in continental Europe countries, but also in the UK as it targets mostly office, logistics and residential assets.

The latest fund follows the fully-deployed predecessor Generali Real Estate Debt Investment Fund (GREDIF) which launched in 2019 and raised €1.45bn.

Nunzio Laurenziello, the head of commercial real estate debt funds at Generali Real Estate, said the fund has already closed its first deal in France.

Laurenziello said: “With the traditional lenders’ regulation constraints increasing since the global financial crisis, we see strong opportunities on the CRE Debt market to provide financing on a selective basis.

“With the growing interest rate environment and the moderate leverage of the fund allowing to absorb a potential severe market correction without affecting the loan itself, we expect that

GREDIF II will attract third-party investors in addition to the Generali insurance companies that have already committed.”

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