Patrizia has been hired by an unnamed Hong Kong insurer to invest in real estate debt.
Patrizia said the “leading Hong Kong insurer” has committed an initial $50m (€43.2m) to the Patrizia Global Real Estate Debt mandate, with an intention to expand the mandate further.
The manager said the global real estate debt mandate intends to invest the initial capital in up to four investments across Europe and APAC.
Patrizia – through its Patrizia Global Partners arm – already has an indirect exposure in real estate debt investments across Asia, the US and Europe via local partners.
Marko Multas, the head of Asia, Patrizia Global Partners and fund manager of the new debt product, said in a world of low-interest rates, long-term investors such as insurers and pension funds are increasingly looking at alternative strategies in private markets to secure higher returns.
That is why there is currently a growing appetite for private debt and such investment products, Multas said.
“We believe that real estate debt will offer attractive opportunities for new and existing clients.
”Many traditional lenders like banks have retreated from our target markets, opening up an opportunity for us to provide our clients with access to very attractive yields and diversification. It, therefore, makes a lot of sense for us to offer real estate debt opportunities for our clients.”
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