Real Estate Debt Investment

CAERUS has been active in the Real Estate Debt market for many years, has already carried out transactions worth around 2.3 bn Euros. Through our many years of activity on the investor's side, we are very familiar with the demands of institutional investors, in particular the regulatory requirements.

The changes to the regulatory environment resulting from Basel III and Solvency II reduce the provision of borrowed capital by the banks and also make equity capital investments more expensive for insurance companies. Innovative investors therefore view Real Estate Debt as an attractive alternative investment.

The credit fund managed by CAERUS Debt Investments AG has recently received a fixed equity facility of more than 20 million Euros as a seed investment from the Swiss private bank Reichmuth & Co, which specialises in investment management.

The fund, which is set up under Luxembourg law, has a target volume of 300 million Euros. It concentrates on real estate financing with LTV (loan-to-value) in the 50 to 80 % range. Although the regional focus is on the German-speaking countries (Germany, Austria, Switzerland), financing in the Benelux countries is also considered.

Subscriptions to the fund are subject to a minimum investment of 10 million Euros. The target distribution yield is 6 to 7 % p. a.