Generali Real Estate has hit the market with its follow on real estate lending fund, Generali Real Estate Debt Investment Fund II (GREDIF II).
The Italian giant said it had slated a target size of €1 bn to make senior debt investments with a loan-to-value of up to 60% and variable rates.
It also said the new vehicle was a SFRD Article 8 fund.
News first surfaced that Generali was preparing to launch its second fund in 2021. Its maiden fund launched in 2019 and accumulated €1.45 bn of commitments and is now fully deployed.
Nunzio Laurenziello, head of CRE debt fund, said: ‘Following the successful deployment of GREDIF, we continue our growth strategy on Private Real Estate Debt with the launch of GREDIF II. The fund has an ESG angle, focusing on investments with high environmental and social credentials, and has already closed its first deal in France.’
‘With the traditional lenders’ regulation constraints increasing since the global financial crisis, we see strong opportunities on the CRE Debt market to provide financing on a selective basis. With the growing interest rate environment and the moderate leverage of the Fund allowing to absorb a potential severe market correction without affecting the loan itself, we expect that GREDIF II will attract third-party investors in addition to the Generali insurance companies that have already committed.’
