German Bank Berenberg has partnered with Universal Investment Luxembourg to launch its first private debt real estate fund.
The Berenberg Real Estate Debt Fund has a conservative investment profile which enables investors to make broadly diversified investments in secured real estate financing starting at a mid-single-digit million amount.
The fund focuses on financing situations such as property purchases, project developments, portfolio, interim or leasehold financing of residential and commercial real estate with security and low to moderate loan-to-value ratios in established European markets.
“Real estate financing is a long-established asset class that has an increasing need for alternative forms of financing due to the decline in real estate lending by banks,” said Dieter Duncker, head of real estate finance at Berenberg.
“The Berenberg real estate debt funds make it possible to fill the financing gap that has arisen with a conservative approach.
“By exploiting financing niches, the support of complex financing structures as well as the experience in real estate financing can offer investors an attractive rate of return while maintaining a conservative risk profile.”
“The optimal gearing of real estate and structuring expertise enables the implementation of innovative structures, such as the introduction of super senior loans for real estate financing,” said Lars Hagemann, head of structured finance at Berenberg.
“Berenberg already has this credit structure successfully established for corporate financing.”
The real estate private debt fund complements several closed-end debt funds launched since 2016.
Separately, in July last year, Berenberg acted as nominated adviser and broker to LendInvest when it started trading on London’s AIM and acted as bookrunner in connection with the placing.