A German insurer has backed FAP Group’s real estate debt fund with a €50m commitment.
FAP Group said the capital from the unnamed insurer is the largest individual investor commitment to the FAP Balanced Real Estate Financing I Fund, and lifts the mezzanine fund’s capital to more than €200m.
Hanno Kowalski, managing partner of FAP Invest, said: “Following the largest individual investor commitment to date, we expect further capital inflow of around €50m in the third quarter. Activity on the lending side is also imminent: We are currently finalising credit allocations in the double-digit millions.”
FAP Balanced Real Estate Financing I Fund was launched at the end of 2018 to allocate subordinated capital to existing properties, revitalisation projects and developments in Germany.
The manager said the core mezzanine vehicle has distributed a volume of over €80m over the past months.
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