TH Real Estate’s latest UK real estate debt fund has received capital from institutional investors at first close, the manager said.

Global Real Estate Debt Partners, which expects to raise £500m (€567m) at final close, has received capital committed from Asian, US and European institutions, TH Real Estate said without disclosing any further details.

The seven-year term fund invests in whole loans up to 75% loan-to-value, targeting 6% net income return.

Loan origination is focused on real estate, well-positioned across South East and regional markets of the UK.

Christian Janssen, the head of commercial real estate debt, Europe, at TH Real Estate, said: “The success of this first close demonstrates the appeal of investing in debt and in particular, our strategy, which aims to offer a measure of downside and performance protection, diversification and the opportunity for stable income-focused returns.

“We are delighted to see investors from our first fund strategy, invest in the second, showing continued support for the platform. The Debt team’s experience, global track record and extensive originations network ensures our ability to source and manage the very best opportunity for our clients.”

TH Real said it has commenced its investment programme with a £44m loan in the South East of England.