German real estate bank HSH Nordbank and Vienna-based asset manager Aurelius Capital Management have established a joint venture, named Aurora Real Estate Partners, to create and manage a portfolio of high-yield real estate loans. The loans will be securitised as commercial real estate collateral debt obligations (CRE CDOs) and placed on the capital market. HSH said the loans - initially focused on Europe - will range from EUR 5 mln to EUR 50 mln each. The fund’s target size is EUR 300 mln.