Generali Real Estate is launching its second European commercial real estate (CRE) debt fund, Generali Real Estate Debt Investment Fund II (GREDIF II).
The Generali Real Estate Debt Investment Fund II aims to capture the opportunities offered by the CRE debt market
GREDIF II has a target size of €1 bn and targets senior debt loans financing, with a loan-to-value (LTV) up to 60% and variable rates.
To build a well-diversified and resilient investments portfolio, the fund aims to invests across Europe (primarily in continental Europe countries, but also in the UK), and across different asset classes (mainly office, logistics and residential).
Thanks to the ESG focus of its investment strategy, GREDIF II is a product referred to under SFDR art. 8. The investment process includes, as a binding element, the assessment of the loan against a tailored and proprietary ESG scorecard, which analyzes both the project sponsor and the underlying asset; the investment can be approved only if a minimum threshold is reached.
The predecessor Generali Real Estate Debt Investment Fund (GREDIF) launched in 2019 and focused on commercial real estate debt.
The GREDIF fund has raised €1.45 bn from Generali Group companies and third party clients, now fully deployed in the financing of high-quality assets across Europe.
Nunzio Laurenziello, Head of CRE Debt Funds at Generali Real Estate, commented: “Following the successful deployment of GREDIF, we continue our growth strategy on Private Real Estate Debt with the launch of GREDIF II. The fund has an ESG angle, focusing on investments with high environmental and social credentials, and has already closed its first deal in France. With the traditional lenders’ regulation constraints increasing since the global financial crisis, we see strong opportunities on the CRE Debt market to provide financing on a selective basis. With the growing interest rate environment and the moderate leverage of the Fund allowing to absorb a potential severe market correction without affecting the loan itself, we expect that GREDIF II will attract third-party investors in addition to the Generali insurance companies that have already committed.”