Rivercrown is planning to raise up to €500m for a new European real estate debt fund.

The London-based investment firm said it has launched the special situations credit vehicle to target real estate sectors that are ”currently out of favour including value-add retail and leisure, particularly with re-purposing opportunities, and serviced offices in strong locations”.

The fund will also be open to hotel developers or investors as well as student accommodation and residential investors and other markets with pandemic-related issues; or opportunities, including speculative logistics development

Rivercrown said it has initially seeded the vehicle with its own capital, alongside that of one other partner.

The manager said it is currently in talks with investors to commit capital to the fund to enable it to deploy €250m to €500m over the next 12 months.

 Charles Archer, head of debt investment management within Rivercrown’s principal investment division, said: “We are seeing a wealth of opportunities, across all sectors. Often where there is a funding-gap combined with an element of short-term, situational distress.

“Our current transaction pipeline is in excess of £2bn (€2.2bn), half of which conceptually fits the vehicle’s mandate. We have already issued a number of term sheets and see speed and certainty of execution as being key differentiating factors.”

Rivercrown co-founder Stephen Benson said: “Our experience combined with our on-the-ground teams across Europe, means that alongside our investors we will be excellently placed to support borrowers with the right track records and business plans in these unprecedented times.”

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