Invesco Real Estate has made its debut in the Italian real estate lending market with a €30m commitment to a new direct lending fund managed by Kryalos.
The loan fund, entirely subscribed by Invesco Real Estate vehicles, is structured as an alternative credit investment fund intended for the direct disbursement of guaranteed real estate financings in Italy.
Invesco Real Estate said the loan is being used for the acquisition of land and subsequent development of a 24,000sqm cold storage facility located in the Port of Trieste.
Andrew Gordon, managing director, head of European real estate debt at Invesco Real Estate, said the expansion into the Italian loan market builds on the firm’s already well-established equity footprint in Italy.
Gordon added: “The trend towards alternative lenders makes this an opportune time for our first debt deal, which benefits from both our strong capabilities in structuring the debt for our sponsor as well as our deep understanding of the underlying real estate thanks to our existing local presence.
“This initiative sees our portfolio of income-producing loans on high-quality assets for first-class sponsors grow and diversify and is testament to our commitment to providing diverse and robust investment opportunities for our clients.”
Paolo Bottelli, CEO of asset manager Kryalos, said: “With the launch of this new Italian loan fund, our company has taken a significant step forwards into the real estate direct lending sector, which is rapidly growing in Italy as an alternative to bank financing.
“Such vehicles are becoming prevalent given the greater flexibility of the structures and the reduced time needed to access credit.”
Bottelli added that in the “current environment, with high rates and restricted credit, we are seeing growing demand from investors on the financing front, with Kryalos SGR focused on disciplined asset selection as a means to deliver an enhanced service for our investors”.
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