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DWS launches European junior real estate debt fund

DWS has launched its sixth real estate debt fund, raising an initial EUR150 million for the European fund.

The asset manager said the European Junior Real Estate Debt Fund is expected to reach a total volume of EUR500 million.

The European property debt fund will focus on building a subordinated loan portfolio secured by high-quality pan-European core/core-plus real estate, targeting a high single-digit rate of return at a maximum loan-to-value of the portfolio of 75per cent, DWS said.

Jens Witzke, head of private debt, investment specialists: “Private debt is valued by institutional investors primarily for its diversification effect, attractive risk-adjusted returns and reliable income stream.”

Alexander Oswatitsch, the head of real estate debt in Europe, said: “This is another milestone for our real estate debt platform, which also reflects confidence in our underwriting expertise and strong sourcing and closing power.”

Oswatitsch said since the launch of the DWS European real estate debt platform in 2014, more than 50 deals have been closed.

DWS’s real estate debt platform currently manages six European senior and junior strategies in total via client mandates and as open-ended or closed-end funds, with a total volume of EUR2.5 billion.

Source: realassets.ipe.com on the 12th of May 2022