Edmond de Rothschild Real Estate Investment Management (REIM) completed another equity closing in its pan-European High Yield I Real Estate Debt Fund taking the current equity commitment in the Fund to above EUR 160 million.
The capital was raised from a large German insurance company and a mix of international investors arranged through the Edmond de Rothschild Private Bank. The Edmond de Rothschild High Yield I Real Estate Debt Fund is providing whole loans and mezzanine loans secured against real estate collateral across Western Europe. The Fund was launched in November 2020 with a target size of EUR 300 million and has invested into four European debt transactions so far with a total loan commitment of approximately EUR 145 million. The Fund is targeting circa 8% net IRR including a running coupon 4%-5% p.a. paid out on a quarterly basis1.
The Edmond de Rothschild REIM Real Estate Debt Team is also managing a EUR 180 million separate fund dedicated to one German institutional investor taking the total capital raised for its European Real Estate Debt Strategies to date to more than EUR 340 million.
Ralf Kind, Head of Real Estate Debt at Edmond de Rothschild REIM, said: “The success of this closing demonstrates the relevance of our investment strategy in an uncertain macroeconomic environment. Building a diversified pan-European loan portfolio focused on achieving an attractive risk-adjusted return with a stable cash distribution and each loan investment benefitting from a security package and the sponsor’s equity cushion fully meets the needs of investors. Credit is a good place to be when markets are going through a correction. We continue to grow our Real Estate Debt Fund backed by a strong deal pipeline and number of deals in due diligence as well as intensified international fundraising activities.”
The Edmond de Rothschild Real Estate Debt – European High Yield I Fund is a closed-ended fund domiciled in Luxembourg in the form of a SCA SICAV-RAIF. Alter Domus is the Alternative Investment Fund Manager.
1 Growth / performance objective is based on the realization of market assumptions adopted by Edmond de Rothschild Asset Management (France) and it is by no means a promise of growth / performance.
DISCLAIMER
The Edmond de Rothschild Real Estate Debt – European High Yield I Fund is exclusively reserved for professional investors and may be subject to restrictions for certain persons and in certain countries. The Fund does not guarantee or protect the capital invested, so that investors may not get back the full amount of their capital, originally invested even if their units are held for the recommended investment period. Any investment in the Fund is associated with certain risks, not limited to liquidity risk, concentration risk (investments in real estate) and currency risk. Any investment in the Fund may only be made on the basis of documents and information that comply with the applicable regulations.
ABOUT EDMOND DE ROTHSCHILD REAL ESTATE INVESTMENT MANAGEMENT
With more than CHF 12 billion in real estate assets, the Edmond de Rothschild real estate investment management platform operates through local operating entities in Switzerland, France, the UK, Benelux and Germany. Backed by strong convictions in responsible investment, active management and close proximity, a vast European network of 120 professionals in 9 offices, develops and supports real estate projects in the office, industrial, logistics and residential sectors on behalf of discretionary funds and third-party mandates.
ABOUT EDMOND DE ROTHSCHILD
As a conviction-driven investment house founded upon the belief that wealth should be used to build the world of tomorrow, Edmond de Rothschild specializes in Private Banking and Asset Management and serves an international clientele of families, entrepreneurs and institutional investors. The group is also active in Corporate Finance, Private Equity, Real Estate and Fund Services. With a resolutely family-run nature, Edmond de Rothschild has the independence necessary to propose bold strategies and long-term investments, rooted in the real economy. Founded in 1953, the Group now has CHF 178 billion of assets under management at the end of December 2021, 2,500 employees, and 29 locations worldwide.
Press contact:
EDMOND DE ROTHSCHILD
Florence Gaubert: +41 79 340 07 26 – f.gaubert@edr.com