PropertyEU: Caerus adds €47m to eurozone real estate debt fund

Caerus Debt Investments, led by fund specialist and former INREV chairman Michael Morgenroth, has raised an additional €47 mln for the firm's Archimedes real estate debt fund.

The new equity commitment for the senior/whole-loan vehicle focused on the eurozone comes from a 'major German insurance company,' according to Caerus.

The capital injection lifts the equity available to Archimedes to €129 mln. In the first closing, a large German insurance company and a pension fund subscribed a total of €82 mln to the fund. The fund is expected to have a value of €300 mln.

Investors can participate via the new Luxembourg-registered Caerus real estate debt fund with a minimum subscription amount of €10 mln. The target Internal Rate of Return is 3% to 4% per annum.

Structured as a pool fund, the fund invests in senior collateralised loans on real estate, with a loan-to-value ratio of up to 80%. The regional focus is on the core eurozone states, limited to Germany, Austria and Switzerland, as well as the Benelux countries (Belgium, the Netherlands and Luxembourg).

Explaining the attractiveness of real estate debt as an asset class, Michael Morgenroth, CEO of Caerus Debt Investments, said: 'No other asset class currently offers a more attractive risk-return ratio and a higher return, particularly for insurance companies, in relation to the equity securitisation required by Solvency II.'

Based in Dusseldorf, Caerus Debt Investments is an investment consultancy company specialising in real estate debt.

The management, led by Michael Morgenroth with Patrick Züchner as chief investment officer, took over and renamed the company in a full management buy-out of the shares formerly held by Signa Holding in 2013.

The parent company of Swiss private bank Reichmuth & Co and Dupuis Asset Management Capital, Berlin, are also shareholders in Caerus.

PropertyEU Magazine, 12 July 2017

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