German real estate debt specialist BF.capital, a subsidiary of BF.direkt, has unveiled plans for a new debt fund, hiring Jan von Graffen as a managing director to move ahead with the issue and placement.
'Getting into the funds business is the next logical step given our business activities to date,' said Manuel Köppel, managing director at BF.capital.
'We have a very large deal pipeline to choose from thanks to the excellent network of the BF.direkt Group. In addition to selection and structuring, we also have a great deal of experience in back office, i.e. in risk management and the ongoing monitoring of real estate debt and mezzanine investments that we will roll into the new fund.'
The fund is set to invest in both project developments and existing properties, with an 'active adding value' strategy, according to the firm.
It will focus on metropolitan centres in German-speaking countries, primarily in Germany, with a target volume of at least €200 mln. Its investment universe comprises senior debt instruments as well as junior debt or mezzanine tranches.
The vehicle will be set up under Luxembourg law, and optimised for the interests of tax-paying and tax-exempt institutional investors, BF said.
Von Graffen, who will join the firm from July 1, was previously head of annuities / cash at the Alte Leipziger – Hallesche Group, where he was responsible for assets under management of EUR 30 bn. Other roles have included Continentale Versicherungsverbund and Süddeutsche Krankenversicherung, where he spent more than eleven years, predominantly in management positions.
'I am extremely familiar with the needs and decision-making processes of this investor group thanks to my 15 years of professional experience at renowned institutional investors,' von Graffen (pictured) said. 'I am seeing strong demand for products with properties such as those offered by the new fund among institutional investors. The fixed income component secured by German properties means that it offers a good substitute for annuities.'
'We have specifically tailored our fund concept to institutional investors. The fund will have a term of seven years, though the individual financing transactions will be shorter so that we assume revolving investment two to three times over throughout the fund’s term,' added Köppel.
