HanseMerkur launches sixth RE debt fund
The investment arm of insurer HanseMerkur has launched its sixth private real estate debt fund, targeting a volume of up to €500m (£425.3m).
HanseMerkur Grundvermögen, which manages more than €7bn of real estate assets, said the fund expands its range of financing for investors, providing senior secured loans in the form of whole loans and senior loans for properties in Germany, Austria and Switzerland.
The Private Real Estate Debt Fund VI has already issued its first financing, a €40m green loan for the refinancing of the Holiday Inn Express Düsseldorf Airport.
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The fund is designed to address a growing financing gap, HanseMerkur Grundvermögen said. Higher interest rates, rising construction costs and more selective lending by banks mean existing financing structures no longer fit the market, even for good-quality properties in strong locations. Additional regulatory requirements are also increasing banks’ capital requirements, the firm added.
“The need for whole-loan financing has increased significantly in the market,” said Malte Andes, deputy chief executive of HanseMerkur Grundvermögen.
“With the Private Real Estate Debt Fund VI, we offer borrowers reliable financing from a single source and institutional investors access to a diversified portfolio of high-yield real estate financing.”
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The fund will finance only existing properties, focusing primarily on new office and residential buildings, local shopping centres, logistics properties, mixed-use properties and hotels in established locations or in areas with recognisable development potential, the firm said.
While the new fund focuses on senior secured loans, HanseMerkur Grundvermögen’s fifth debt fund, launched previously, focuses on subordinated and syndicated financing.
HanseMerkur Insurance Group will hold a permanent stake of 20 to 30 per cent in the portfolio, with each of the two funds expected to reach up to €500m, the firm added.
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