Deutsche Asset Management (Deutsche AM) has closed a new fund mandate with a total of €750 mln in commitments on behalf of its institutional client Bayerische Versorgungskammer (BVK). The fund will invest in real estate debt.
'This new mandate, alongside our €750,000,000 European senior loan fund, allows us to provide junior and stretched senior capital on large European and U.S. transactions,' commented Andrea Vanni (pictured), head of European debt investments at Deutsche AM.
The fund will focus on stretched senior loans and subordinated loans with blended target returns in excess of 4%, secured against income producing, institutional quality assets, with a portion of the fund allocated to development funding. Targeting mainly transactions in Europe and the United States, investments are expected in the region of €50 - 250 mln per loan.
'This capital raise demonstrates the growing demand for real estate loans by alternative lenders and the strengths of our real estate platform,' said Clemens Schaefer, Deutsche AM's CIO and head of portfolio management real estate, Europe.
The new mandate brings the total volume of Deutsche AM’s real estate debt business to €2 bn as at 7 November, 2016.
