Kingstone Debt Advisory (KDA), a joint venture of Pegasus Capital Partners and Kingstone Capital Partners, has announced the launch, together with DZ Privatbank in Luxembourg, of a new closed-end real estate debt fund, Focus Mezzanine Germany I.
The vehicle is the first subfund to the Kingstone Debt Opportunities umbrella fund and targets a gross asset value of between €150 and €200 mln.
It will be investing through mezzanine loans and whole loans in residential and commercial real estate developments and portfolio properties with appreciation potential in strong business locations throughout Germany. The fund structure is geared to meet the regulatory requirements of savings banks and credit unions.
The vehicle will seek to build a 50-50 exposure to residential and commercial real estate. DZ Privatbank acts as the custodian, transfer and registration office. Its wholly owned subsidiary, IPConcept will assume responsibility for administration as Alternative Investment Fund Manager (AIFM).
‘Besides our range of real estate funds, our debt-investment platform provides institutional investors access to the regulated mezzanine and whole-loan sector,’ said Tim Schomberg, managing partner of KDA. ‘With DZ Privatbank and IPConcept, we have found the ideal partners for our mezzanine fund, which is especially geared to the needs of banks. Thanks to decades of expertise, both companies enjoy enormous confidence throughout the entire banking sector and are familiar with all reporting requirements, as well as the risk management demands of the banks. We look forward to a long and fruitful partnership with more products to come,’ added Markus Mayer, managing director of KDA.
