CAERUS grants EUR 370 million of finance in 2018
04. February 2019
CAERUS Debt Investments AG (CAERUS), via its Luxembourg real estate debt platform, granted real estate-secured loans of over EUR 370 million in 2018, maintaining the high investment ratio of the funds entrusted to the company. The focus was on whole-loan finance. Bridge and mezzanine loans were a second mainstay.
Projects across a range of asset classes were financed. The major borrowers were primarily portfolio owners, as well as office and residential developers in Germany, the Netherlands and Austria. The largest single advance last year was a whole loan financing of almost EUR 120 million, secured on a diversified residential property portfolio in Germany.
In the last few years CAERUS, with its real estate debt funds, has granted loans totalling around EUR 1.65 billion. The main investors in the fund are insurance companies, occupational pension schemes and pension funds.
Michael Morgenroth, CEO of CAERUS Debt Investments AG, on the expectations for 2019 said: "The year will be, yet again, better than many are anticipating. Real estate debt is still the preferred asset class, particularly by regulated institutional investors. There will be neither an interest rate increase nor significant dips in prices. At the same time, turnover remains high. This is reflected in our well-filled deal pipeline."
CAERUS raises a further 47 million Euro for Archimedes Fund
12. July 2017
In a second closing, CAERUS Debt Investments AG (CAERUS) has raised a further 47 million Euro for its "Archimedes" senior/whole-loan real estate debt fund. Capital commitments for the fund now total 129 million Euro. The new capital will come from a major German insurance company and an increase by an existing investor. In the first closing, a large German insurance company and a pension fund subscribed a total of 82 million Euro of shares in Archimedes.
Investors can participate via the new CAERUS Real Estate Debt LUX S.C.A.-SICAV-SIF subfund, with a minimum subscription amount of 10 million Euro. The target interest rate is 3 to 4 % p. a. (IRR). The fund is expected to have a value of 300 million Euro.
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 D-A-CH and the Benelux countries.
Explaining the attractiveness of Real Estate Debt as an asset class, Michael Morgenroth, CEO of CAERUS Debt Investments AG, 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."
CAERUS capital commitments exceed 1 bn EUR with First Closing of Archimedes
22. November 2016
CAERUS Debt Investments AG (CAERUS) has passed the 1 bn Euro mark in total capital commitments, in the course of the First Closing of its senior/whole-loan real estate debt fund "Archimedes". To date, CAERUS has successfully placed around 800 million Euro of this in loans.
A large German insurance company and a pension fund have subscribed a total of 80 million Euro of shares in Archimedes.
Investors can participate via the new CAERUS Real Estate Debt LUX S.C.A.-SICAV-SIF subfund with a subscription amount from 10 million Euro. The target interest rate is 3 to 4 % p. a. (IRR). The fund should have a volume of 300 million Euro.
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 countries of the Eurozone, limited to D-A-CH and the Benelux countries.
"No other asset class currently offers a more attractive risk-return ratio and, particularly for insurance companies, a higher return in respect of the capital adequacy rules required under Solvency II," says Michael Morgenroth, CEO of CAERUS Debt Investments AG, explaining the attractiveness of real estate debt as an asset class.
CAERUS Debt Investments launches 300 million Euro property loan fund
29. September 2016
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.
CAERUS places real estate finance totalling 0.5 bn Euro
30. September 2015
- 500 million Euro loaned in the last 12 months
- Attractive yields and stable cash flows decisive factors for lending
- Office property finance takes lion's share
In the last 12 months alone, the loan funds advised by CAERUS Debt Investments AG (CAERUS) have placed around 500 million Euro of loans secured on real estate.
"The decisive factors for awarding loans were stable cash flows from the property to be financed and the generation of attractive yields for investors", explains CAERUS-CIO Patrick Züchner.
Both entire portfolios and individual properties, in Germany and Austria, were financed. More than half the loans were to finance office properties.
The remainder of the loans were distributed over hotel, residential and logistics properties. Recently, two hotel portfolios, comprising 17 properties, have been financed.
CAERUS’ CEO Michael Morgenroth said: "The last 12 months have shown that the market for alternative financing models, outside traditional bank loans, is ever-increasing in importance. This trend is not limited to Germany. This is very clear to us from the financing applications received, which are increasingly from the Netherlands, Belgium and Luxembourg. Unlike the investigation recently published by Scope Ratings, we have not noted any change in this trend. In contrary to the sector average of only 29% determined by the analysis, within 12 months we have already been able to invest 62.5% of the available capital.”
CAERUS gains additional mandates for real estate debt investments: now totalling over 800 million Euro
09. July 2015
Dusseldorf, 9 July 2015 - CAERUS Debt Investments AG (CAERUS) has received new advisory in-structions for the issue of real estate financing worth almost 400 million Euro. The credit funds advised by CAERUS have therefore entrusted more than 800 million Euro for investments in loans secured on real estate.
For instance, Volkswohl Bund Insurance has increased its mandate to CAERUS by 300 million Euro, to a new total of 500 million Euro. CAERUS advises the company on investments in senior loans se-cured on real estate with higher loan-to-value ratios, so-called whole loan financing.
The credit fund advised by CAERUS, the CAERUS Real Estate Debt Lux. S. C. A., SICAV-SIF-Fund I (“CAERUS Real Estate Debt Fund I”) has received a further 50 million Euro equity facility from another German insurance group.
The credit fund, which is set up under Luxembourg law, has a target volume of 300 million Euro. It concentrates on real estate financing and bridging loans with LTV (loan-to-value ratios) of up to
85 %. The primary focus is on Germany, Austria and Switzerland, although financing in the Benelux coun-tries is also considered. Subscriptions to the fund are subject to a minimum investment of 10 million Euro. The target distribution yield is 6 to 7 % p. a.
CAERUS receives another 350m EUR for Real Estate Debt Investments
15. January 2015
- Individual mandates for whole loans from two major German institutional investors
- Capital commitments rise to 420m EUR
- Financing totalling 188m EUR already disbursed
CAERUS Debt Investments AG was appointed as investment adviser to two major German institutional investors in the fourth quarter of 2014. CAERUS will advise them initially on the investment of a total of 350 million EUR in senior collateralised mortgage loans with high loan-to-value (LTV) ratios, so-called whole loans.
Michael Morgenroth, CEO of CAERUS Debt Investments AG: “Widening our investment solutions to include whole loans will provide investors with access to attractive yields. As part of our investors’ portfolios, these make a noticeable contribution to achieving their internal target returns.”
Together with the capital budgeted for junior and mezzanine loans, this means that the investment funds advised by CAERUS Debt Investments have entrusted a total of 420 million EUR for investment in loans secured on real estate. The first three investments of funds from the individual clients, totalling 188 million EUR, are already in place. The loans are secured both on individual properties and on real estate portfolios. Office space comprises the main use type, although mixed-use properties that include hospitality/leisure elements have also been financed.
Dr. Patrick Züchner, CIO of CAERUS Debt Investments AG: “For some time we have been noting considerably increasing demand for senior secured real estate loans, from a single source, for locations away from the top cities and use types outside the mainstream. This demand is not being adequately satisfied by the traditional market players. Individual clients advised by CAERUS have access to financing solutions for complex financing situations, for example in the area of larger portfolios.”
CAERUS raises EUR 70 million for debt fund at first closing
06. March 2014
The debt fund CAERUS Real Estate Debt Lux. S.C.A., SICAV-SIF-Fund I ("CAERUS Real Estate Debt Fund I"), which is advised by CAERUS Debt Investments AG and already has obtained an AIFM authorisation from the Luxembourg supervisory authority CSSF, has received another firm equity commitment.
Gothaer, one of the major German insurance groups, has committed 50 million Euro. Prior to that, the fund had received a commitment for 20 million Euro from Reichmuth & Co, a Swiss private bank that specialises in asset management.
"This means we have achieved a volume of 70 million Euro at the first closing, which we now want to invest as soon as possible," says Michael Morgenroth, CEO of CAERUS Debt Investments AG. He adds: "We value the trust that Gothaer has placed in CAERUS Debt Investments AG and see it as confirmation of our view that institutional investors are increasingly discovering real estate debt as an attractive asset class for their portfolios."
The debt fund, which has been established under Luxembourg law, has a target volume of 300 million Euro and concentrates on real estate financing with loan-to-value (LTV) ratios of between 50 - 80 %. The regional focus is on German-speaking countries (Germany, Austria, Switzerland), although financing in Benelux countries will also be considered. The fund can be subscribed from a minimum investment amount of EUR 10 million upwards; the distributed return target is 6 to 7 % p. a.
CAERUS Debt Investments AG is a member of INREV
04. November 2013
Caerus Debt Investments AG has been a member of the European Association for Investors in Non-Listed Real Estate Vehicles (INREV) since November 2013. Established in 2003, INREV is a non-profit association located in the Netherlands that aims to increase liquidity in Europe's private real estate fund market. It has around 350 members, including institutional investors, fund managers and investment banks. Its goal is to improve transparency and professionalism across the sector. To this end, the association regularly publishes sector guidelines aimed at standardising working practices, organises conferences and presents seminars.
Dupuis, Lepper and Reichmuth elected to supervisory board of CAERUS Debt Investments AG
19. September 2013
Dusseldorf, 19 September 2013 - Subsequent to the full management buy-out of what is now CAERUS Debt Investments AG by Michael Morgenroth and the ensuing widening of the shareholder base, the annual general meeting on 4 September 2013 elected a new supervisory board.
The three-member supervisory board of CAERUS Debt Investments AG comprises Frank Dupuis as Chairman, Martin Lepper as Deputy Chairman, and Christoph Reichmuth.
Frank Dupuis is the founder and managing partner of DUPUIS, an independent German investment- and asset-management company. As an investment boutique, DUPUIS handles the owners’ representation for institutional investors and international Family Offices Frank Dupuis, who has more than 25 years experience in the real estate industry, has been independent since 1992. Inter alia he is a member of the advisory board of Berliner Volksbank and the council of the IREBS Foundation for African Real Estate Research.
Martin Lepper is Senior Consultant at the ECE Group. Previously, as Managing Director, he built up ECE Office Traffic Industries G.m.b.H & Co. KG, where he realised a range of major projects. Prior to that, at Deutsche Bahn he was responsible for the development and supervision of all railway stations. A specialist in commercial and administrative law, he has more than 25 years' real estate experience.
Christof Reichmuth is CEO and partner with unlimited liability at Reichmuth & Co Privatbankiers, a Swiss private bank specialising in integral asset management for private and institutional clients.