Edmond de Rothschild Real Estate Investment Management (REIM) has increased the capital of its pan-European High Yield I Real Estate Debt Fund, taking it to over €160 mln.
The capital hike was secured from a large German insurance company and a mix of international investors arranged through the Edmond de Rothschild Private Bank.
The High Yield I Real Estate Debt Fund provides whole and mezzanine loans secured against real estate collateral across Western Europe.
Commenting on the news, Ralf Kind, head of the Real Estate Debt at Edmond de Rothschild REIM, highlighted that the closing ‘demonstrates the relevance of our investment strategy in an uncertain macroeconomic environment.’
He pointed out that the Real Estate Debt Fund will continue to grow, ‘backed by a strong deal pipeline and number of deals in due diligence as well as intensified international fundraising activities.’
Launched in November 2020 with a target size of €300 mln and targeting professional investors, the Luxembourg-based closed-ended fund has since invested into four European debt transactions for a total loan commitment of some €145 mln.
The Fund is seeking around 8% net internal rate of return including a quarterly yield of 4-5%.
The Edmond de Rothschild REIM Real Estate Debt Team is also managing a separate €180 mln fund dedicated to a German institutional investor, taking the total capital raised for the European Real Estate Debt Strategies to over €340 mln.
Edmond de Rothschild REIM is aiming to build a diversified pan-European loan portfolio with attractive risk-adjusted returns and stable cash distribution, while each loan investment benefits from a security package.
