The Empira Group, an insitutional investment manager in German-speaking Europe, has announced the launch of Empira Real Estate Finance Fund IV, the company’s fourth debt fund.
'The new fund offers an innovative joint-venture approach,' said Lahcen Knapp, Empira's CEO. 'The product combines mezzanine capital with relatively low current interest rates and a share in the financed property. The fund’s volume is €500 mln and a first loan has already been handed out.'
The new product issues subordinated mezzanine loans and is targeted at developers in Germany, Austria, Switzerland and the Benelux region that are looking to purchase land or properties to develop residential or commercial projects.
According to Empira, the fund seeks to acquire a 50% share in financed developments with a minimum total investment volume of €150 mln.
'Institutional investors benefit from the current interest and at the same time can participate in the value creation,' added Knapp. 'Developers, in return, receive attractive mezzanine capital and thus an alternative to conventional bank financings.'
