New debt fund acquires German resi loans

German fund manager iii-investments has acquired the first financing deal on behalf of its latest debt fund vehicles.

The €30 mln facility had been granted under a syndicated loan arranged by the Deutsche Bank for the acquisition of a residential portfolio in North Rhine Westphalia.

iii-investments has also announced that another institutional investor has joined its new pool fund. As a result iii-investments has raised more than €300 mln of equity capital from insurance companies, pension schemes and pension funds for its two real estate debt funds.

'With this contribution to the financing of a widely diversified residential portfolio we have succeeded in making our first debt purchase on attractive terms,' Reinhard Mattern, managing director of iii-investments said. 'As we have received a number of further interesting enquiries from different banks, we are optimistic about being able to place out investors’ capital swiftly'.

A single institutional investor committed €200 mln of equity capital to the first fund. The second fund was started as a pool fund with several investors and, together with the current fund contribution, has a capital commitment well in excess of €100 mln at its disposal.

The plan is to carry on topping up gradually until a target volume of about €300 mln. Both funds are investing in debt, whose mortgaged property is primarily in Germany, as well as in the eurozone.

iii-investments’ real estate debt funds operate indirectly as lenders and acquire bank loans granted by a bank to an investor to purchase or refinance a property.