Volkswohl Bund is more than doubling the size of its real estate debt investment mandate with fund manager Cearus.

The German insurer has followed up on its initial €200m commitment, made earlier this year, with a further €300m. It is Volkswohl Bund’s first allocation to commercial real estate debt.

Caerus has also raised €50m from another German insurer for a separate real estate debt fund.

The manager is seeking to raise €300m for the Caerus Real Estate Debt Fund I.

Caerus will provide whole loans in Germany with loan-to-value ratios (LTV)s of up to 80% on behalf of Volkswohl-Bund.

The fund, meanwhile, will target loans and bridging finane up to 85% LTV in Austria, Germany and Switzerland.

Caerus said the fund, which is aiming for yield of between 6% and 7%, could also lend in Benelux countries.

Last year, German insurer Gothaer backed Caerus’ Real Estate Debt Fund I with €50m. The fund, a Luxembourg SICAV vehicle, has also previously been backed by Swiss private bank, Reichmuth & Co.

Axel Hoffmann, Volkswohl Bund chief finance officer, told IP Real Estate in February that the €11bn institution saw opportunity outside Germany’s main cities.

He said Volkswohl Bund was “convinced” that commercial real estate debt made “sense as part of a strategic asset allocation”.