Deutsche Hypothekenbank has teamed up with Nord/LB Asset Management to launch its first real estate debt fund for an unnamed institutional investor.
Deutsche Hypothekenbank has teamed up with Nord/LB Asset Management to launch its first real estate debt fund for an unnamed institutional investor.
The vehicle will target a diversified portfolio of real estate loans secured against high-quality office, residential and retail assets in core markets. It will have a starting volume of €200 mln.
Nord/LB Asset Management takes over the management and risk monitoring of the fund.
'Institutional investors such as savings banks, insurance companies and pension funds are increasingly moving to this asset class. We can therefore imagine the creation of additional debt funds over time,' added Hinrich Holm, who is responsible for the capital markets business in the executive board of Nord/LB.
The partnership is the second launched by property lender Deutsche Hypo in the recent past. In late 2013, the bank formed a joint venture with pension fund Bayerische Versorgungskammer (BVK) to finance commercial real estate in Germany.
'Banks are changing: the classical function as a pure lender is losing significance. Rather, it is important that banks acquire more capital and structure the financing in order to be successful,' commented Andreas Pohl, CEO of Deutsche Hypo.