Germany's FAP launches €250m mezzanine debt fund

Berlin-based investment manager FAP Invest has announced the launch of a €250 mln mezzanine fund focused on real estate development projects in Germany, as well as selectively in the Netherlands and Austria.

The vehicle, FAP Balanced Real Estate Financing I is a master/feeder fund, based in Luxembourg with the legal form of a fully regulated S.C.Sp., SICAV-SIF. The Bank of Hauck & Aufhäuser Luxembourg functions as fund manager (AIFM), while FAP Invest is taking over the role of investment consultant and advisor.

The fund has a five year life term and focuses on the finance of residential, office/business, retail and hotels properties.
Curth-C. Flatow, founder of the FAP Group said: 'There are some debt funds in Europe that could also do business in Germany. Most of these funds, however, have a pan-European focus and have consequently directed their financing conditions to a pan-European market. Due to the market parameters they can only very seldom provide financing conditions that fit the individual German financing market. This is the gap that our fund offer will fill. Most recently we have spoken to American and Asian investors. Even if there are markets, in which better return on investment can be achieved, there are also good reasons for international investors to be invested in the most significant real estate and property market in Europe, in Germany.'

'From the viewpoint of the borrower, we are entering the market with attractive pricing so that we can secure good addresses with good track records and projects,' added Hanno Kowalski, managing director of FAP Invest: 'The clear premise for this is: We do not want to finance everyone but in the interest of our investors to accompany borrowers with an excellent track record and good projects.'


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