DWS has announced the first close of a new European Junior Real Estate Debt Fund with capital commitments of €150 mln. This marks the launch of DWS's sixth real estate debt fund.
This European Property Debt Fund will focus on building a subordinated (junior) loan portfolio secured by high-quality pan-European core/core+ real estate, targeting a high single-digit rate of return (IRR) at a maximum loan-to-value (LTV) of the portfolio of 75%. It is targeted at institutional investors across Europe and is expected to reach a total volume of approximately €500 mln.
Alexander Oswatitsch, head of Real Estate Debt, Europe, said: ‘This is another milestone for our real estate debt platform, which also reflects confidence in our underwriting expertise and strong sourcing and closing power. Since the launch of our European Real Estate Debt platform in 2014, more than 50 deals have been closed, building a network of long-term industry relationships.’
Jens Witzke, head of Private Debt, Investment Specialists, added: ‘Private Debt is valued by institutional investors primarily for its diversification effect, attractive risk-adjusted returns and reliable income stream.’
DWS's real estate debt platform, which has been expanding since 2014, covers European transactions through offices in London, Frankfurt and Paris. In total, six European senior and junior strategies are now managed in the form of client mandates and as open-ended or closed-end funds, with a total volume of €2.5 bn.
