FAP’s mezzanine debt fund surpasses €200m mark

FAP Group said on Friday that it has recorded the largest individual investor commitment so far for the FAP Balanced Real Estate Financing I Fund.

Thanks to a €50 mln contribution from a German insurer, the equity volume of the mezzanine debt fund rose to over €200 mln.

FAP’s Balanced Real Estate Financing I Fund was launched at the end of 2018 to allocate subordinated capital to existing properties, revitalisation projects and developments in Germany. The vehicle, positioned as ‘core mezzanine’, has distributed a volume of over €80 mln over the past months.

Among the projects financed is a revitalisation on Düsseldorf’s Königsallee high street, the development of a plot in Frankfurt as well as maximising financing for the acquisition of a residential asset in central Berlin, close to the iconic KaDeWe department store.

Hanno Kowalski, managing partner of FAP Invest, commented: ‘The FAP debt fund has been successfully established in the market and attracts high demand from our investor partners. Following the largest individual investor commitment to date, we expect further capital inflow of around €50 mln in the third quarter. Activity on the lending side is also imminent: We are currently finalising credit allocations in the double-digit millions.’


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