Germany's Intreal has entered the business of real estate private debt.
Going forward, the firm will offer real estate loans as an alternative investment fund manager (AIFM) and central administrator via its Luxembourg-based subsidiary, Intreal Luxembourg. Tim Kiefer, managing director of Intreal Luxembourg, has been in charge of the new business line since February 2022 and has extensive experience in this segment.
Commented Kiefer: 'Real estate private debt funds, while representing only a minor fraction of the debt fund universe, registered fast growth in this segment over the past years. Especially demand among institutional investors remains as strong as ever. And the growth continues, despite the recent interest rate hike.'
Rudolf Kömen, managing director of Intreal Luxembourg, added: 'Luxembourg is the place to be for real estate debt funds. Compared to the regulatory regimes of other countries, it is an excellent domicile for setting up funds of this type.
'The sheer diversity of Luxembourg vehicles provides the necessary flexibility. We are currently in talks with various asset managers who intend to launch debt funds with us. I expect the first fund to go live in Q1 2023.'
Intreal Luxembourg has set up a specialised team that will be in charge of lending and loan administration at the Luxembourg office. In technology terms, the firm uses SAP Loans Management (CML) as an add-on module to its accounting software. 'This makes Intreal Luxembourg one of the few providers on the market offering a dedicated loan management function and extensive reporting,' said Kiefer.
Intreal Luxembourg also plans to expand its regulatory licenses. The company is currently undergoing the approval procedure for AIFM licences for the asset classes 'real estate funds of funds' and 'infrastructure funds'. The licences are expected to be issued in 2023.
