CAERUS Debt Investments launches 300 million Euro property loan fund

CAERUS Debt Investments AG (CAERUS) is continuing to expand its senior-/whole-loan strategy by launching a Luxembourg-based Real Estate Senior-/Whole-Loan Fund.

Structured as a pool fund, analogous to the individual mandates already launched, the fund will be invested in senior collateralised loans on real estate, up to a lending limit of 80 %. The regional focus is also unchanged (the Eurozone, concentrating on Germany, Austria, Switzerland and the Benelux countries). The target interest rate is 3 to 4 % p. a. (IRR). The fund is projected to have a volume of 300 million Euro. The first closing is planned for the end of October 2016.

Investors could participate via the new CAERUS Real Estate Debt LUX S.C.A.-SICAV-SIF sub fund, called "Archimedes", from a subscription amount of 10 million Euro.

In the framework of individual instructions, several major institutional investors have already entrusted CAERUS, as investment adviser, with the implementation of senior/whole-loan strategies with a combined investment volume of 800 million Euro. Caerus has successfully placed around 700 million Euro of this as loans so far.

"For insurance companies, currently no other asset class offers a more attractive risk-return ratio and a higher return in relation to the equity securitisation required by Solvency II", explains Michael Morgenroth, CEO of CAERUS Debt Investments AG.