Global asset manager DWS has closed a €38.8 mln whole development loan to finance the construction of a Spanish build to rent (BTR) residential property.
The financing is on behalf of its European property debt fund.
This will support the development of an affordable housing scheme comprising 315 residential units located in Madrid’s Arganda del Rey over the development and stabilisation period.
This marks the fourth deal the team has completed on behalf of the fund which focuses on building a subordinated (junior) loan portfolio secured by high-quality pan-European core/core+ real estate targeting institutional investors across Europe.
Alexander Oswatitsch, head of European real estate debt said: 'Despite the challenging current market situation, demand drivers in Spain are surpassing European levels making this an attractive deal to further diversify the fund in line with strategy.
'In addition to this whole development loan, DWS remains active and has secured a range of deals on both the senior and mezzanine fronts with residential portfolios including co-living assets and logistics portfolios across continental Europe.
'We will continue to look for attractive opportunities in these resilient asset classes as well as high-quality next-generation-offices.'
DWS's real estate debt platform currently manages six European senior and junior strategies in the form of client mandates and as open-ended or closed-end funds, with a total volume of €2.6 bn as of 30 June 2023.
