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Edmond de Rothschild REIM raises initial €250 million for real estate debt strategy

Edmond de Rothschild Real Estate Investment Management (REIM) has raised an initial EUR250 million for its new European real estate debt strategy, focused on providing whole and mezzanine loans as well as preferred equity to investors in the major European markets.

The capital has been raised from a mix of international investors for two debt vehicles, the Edmond de Rothschild European Real Estate Debt Fund and a dedicated fund with a German insurance group. The Real Estate Debt Fund, which is targeting to deliver an income distribution of 4 per cent-5 per cent a year and a net total return of approximately 8 per cent, is aiming for a target size of EUR300 million.

The two debt vehicles have complementary risk-return profiles and may co-invest in the same loan transactions with target loan-to-value ratios of 70 per cent – 80 per cent on average, potentially more on individual deals. The lending strategies focus on all major and alternative property sectors in the European real estate markets, including Germany, France, Benelux, Nordics, Spain, Italy and the UK, leveraging off Edmond de Rothschild REIM’s extensive network and local presence across Europe. 

The Edmond de Rothschild Real Estate Debt platform offers a comprehensive and flexible range of debt products for borrowers across the capital stack including whole loans, mezzanine debt, select preferred equity, bridge and term facilities for existing properties and development projects. 

Source: propertyfundsworld.com on 23 February (https://www.propertyfundsworld.com/2021/02/23/296279/edmond-de-rothschild-reim-raises-initial-eur250m-real-estate-debt-strategy)