PropertyEU: German insurer targets €500m property debt portfolio

German mutual insurer Volkswohl-Bund has made its first foray into the real estate debt space and says it’s there to stay for the long term.

Volkswohl-Bund, which manages some €11 bn of assets, has awarded a €200 mln mandate to Dusseldorf-based debt specialist Caerus Debt Investments to invest in real estate-backed debt with high loan-to-value (LTV) ratios, or so- called 'whole loans'.

The commitment represents 2% of the group’s total assets and may well rise to 4-5% in the future, according to Axel-Rainer Hoffmann, CFO of Volkswohl-Bund.

Speaking to PropertyEU in an interview, Hoffmann said that real estate debt nicely complements the group’s overall investment strategy, which already includes mortgages (4%) and real estate (10%).

Read full article: PropertyEU Magazine, 13 February 2015

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