Deutsche AM raises €120m for European RE debt fund
Deutsche Asset Management has raised €120m (£99.5m) at the anchor close of its European Property Debt Fund II (EPDF II), with “strong interest” from German institutions.
The fund is the second vintage in the asset manager’s European Property Debt Fund series. It will focus mainly on first-ranking whole loans in the mid-market, with loan sizes of between €25m and €75m.
It will back properties in western Europe, mainly in Germany, France, the UK, Spain, the Nordics and the Benelux region. Target sectors include logistics, residential, student housing and prime office.
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“This anchor close represents a strong market debut for EPDF II – the eighth vehicle launched for our European Real Estate Debt Business and the second vintage of our Luxembourg fund series,” said Clemens Schäfer, global head of real estate for Europe and Asia-Pacific at Deutsche Asset Management.
“This success is built on the proven performance of our predecessor fund, EPDF I, which has significantly outperformed its targets. Building on this momentum with our anchor investors, we will continue to actively engage with institutional investors across Europe, the Middle East, and Asia over the next 18 months, where we already have built a strong pipeline for subsequent closings.”
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The strategy is targeting annual cash distributions of five to seven per cent and an overall net internal rate of return (IRR) of six seven per cent, the firm said.
“In the current market, the demand for flexible, reliable financing partners in the European real estate mid-market is stronger than ever and we are already in the process of converting our investment pipeline to meet this demand,” said Alexander Oswatitsch, head of European real estate debt at Deutsche Asset Management.
The real estate debt team at Deutsche Asset Management, the global umbrella brand of DWS Group, has accumulated volume of more than €3.5bn.
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