Edmond de Rothschild Real Estate Investment Management (REIM)’s pan-European High Yield I Real Estate Debt fund has increased its current equity commitment to above €160 million with a further capital raise.
The capital was raised from a large German insurance company and a mix of international investors arranged through the Edmond de Rothschild Private Bank.
The Edmond de Rothschild High Yield I Real Estate Debt Fund is providing whole loans and mezzanine loans secured against real estate collateral across Western Europe. The fund was launched in November 2020 with a target size of €300 million and has invested into four European debt transactions so far with a total loan commitment of approximately €145 million.
The fund is targeting circa 8% net IRR including a running coupon 4%-5% p.a. paid out on a quarterly basis1.
The Edmond de Rothschild REIM Real Estate Debt Team is also managing a €180 million separate fund dedicated to one German institutional investor taking the total capital raised for its European Real Estate Debt Strategies to date to more than €340 million.
Ralf Kind, Head of Real Estate Debt at Edmond de Rothschild REIM, said: “The success of this closing demonstrates the relevance of our investment strategy in an uncertain macroeconomic environment. Building a diversified pan-European loan portfolio focused on achieving an attractive risk-adjusted return with a stable cash distribution and each loan investment benefitting from a security package and the sponsor’s equity cushion fully meets the needs of investors. Credit is a good place to be when markets are going through a correction. We continue to grow our Real Estate Debt Fund backed by a strong deal pipeline and number of deals in due diligence as well as intensified international fundraising activities.”
The Edmond de Rothschild Real Estate Debt – European High Yield I Fund is a closed-ended fund domiciled in Luxembourg in the form of a SCA SICAV-RAIF. Alter Domus is the Alternative Investment Fund Manager.
