Caerus Debt Investments expects to carry out a first closing by year-end or early 2014 for a German mezzanine debt fund, CEO Michael Morgenroth told PropertyEU at Expo Real.
Caerus Debt Investments expects to carry out a first closing by year-end or early 2014 for a German mezzanine debt fund, CEO Michael Morgenroth told PropertyEU at Expo Real.
‘Fundraising is going well so far,’ Morgenroth said, adding that the fund is targeting equity commitments of around €300 mln. Caerus was created in July from the management buyout of Signa's real estate advisory unit.
Morgenroth said that the mezzanine debt fund will be looking for a target net IRR of 10-11% and a quarterly distribution of 6-7%. It will focus on newly originated facilities rather than loan acquisition and will concentrate on loan-to-values between 50 and 80%.
Morgenroth claims the fund will be the first of its kind in Germany. ‘Our competitors are focusing on the UK market. In Germany, there is enough senior financing but there are no German teams active in the mezzanine space,’ he said.
The vehicle will largely seek exposure to the German-speaking countries, although it is aiming for a 25% allocation to the Benelux countries.
