HanseMerkur targets €500M for sixth real estate debt fund
What's the deal? HanseMerkur GrundvermögenDealroom has a profile for this one. Try Dealroom →, the investment arm of German insurer HanseMerkur, has launched its sixth private real estate debt fund, targeting up to €500 million. The Private Real Estate Debt Fund VI provides senior secured loans — whole loans and senior loans — for properties in Germany, Austria, and Switzerland.
Why now? The firm said the fund addresses a growing financing gap. Higher interest rates, rising construction costs, and more selective bank lending mean existing financing structures no longer fit the market, even for good-quality properties in strong locations.
What's the endgame? The fund will finance only existing properties, focusing on new office and residential buildings, local shopping centres, logistics, mixed-use properties, and hotels. It has already issued its first financing: a €40 million green loan to refinance the Holiday Inn Express Düsseldorf AirportDealroom has a profile for this one. Try Dealroom →.
HanseMerkur Grundvermögen manages more than €7 billion of real estate assets. HanseMerkur Insurance GroupDealroom has a profile for this one. Try Dealroom → will hold a permanent stake of 20 to 30% in the portfolio.
The new fund focuses on senior secured loans, while the firm's fifth debt fund targets subordinated and syndicated financing. Each of the two funds is expected to reach up to €500 million.
The signal: As banks retreat under tighter capital requirements, insurers are stepping in as lenders. "The need for whole-loan financing has increased significantly in the market," said Malte Andes, deputy chief executive of HanseMerkur Grundvermögen.
Read more: alternativecreditinvestor.com
Image credit: Bert Kaufmann
