Nexum Capital has launched a new debt fund with a target volume of €250 mln and engaged Arcida as exclusive advisor for its investment and asset management activities in the German-speaking region (DACH region).
The vehicle, Nexum Tor Funds I, provides national and international institutional investors with access to investments in the real estate distressed debt market and to special situations where stranded real estate with value-add potential exists. The focus is on non-performing loans (NPLs), sub-performing loans (SPLs), real estate owned assets (REOs) and value-add properties (together: Target Investments).
The Fund is domiciled in Luxembourg and targets opportunities throughout the entire DACH region with a planned average investment of €20 to 50 mln per transaction. In terms of the underlying assets, it targets all real estate sectors (including development projects).
Douglas Edwards, managing director of Nexum Capital said: ‘Due to increasing regulation, the COVID-19 pandemic, looming stagflation and high demand for ESG-compliant products we expect multiple investment opportunities. The real estate distressed debt market offers great potential in the form of management-intensive assets as well as debt & special situation workouts.’
Oliver Platt, managing partner of Arcida Advisors, added: ‘Arcida Advisors have the necessary real estate, capital markets and restructuring know-how to maintain and grow real estate asset values even in challenging situations. In the current market environment, the pressure on banks and financiers as well as real estate developers and portfolio holders is increasing. We identify suitable investment opportunities for Nexum Capital S.à r.l. and raise their potential. In doing so, we rely on a holistic stakeholder-management approach that involves investors, lenders and debtors.’
