AEW Europe and Natixis Asset Management are joining forces to raise €240m (£187.2m) for a European debt fund. The Senior European Loan Fund will be a seven-year, closed-ended fund investing in senior real estate loans.
The fund is aimed at professional and qualified investors, and will give a return similar to investment-grade bonds.
AEW and Natixis Asset Management are targeting a first close of €240m, and the fund’s total capacity is €500m. The fund will invest in senior loans financing European real estate assets, with a focus on the UK, Germany and France.
AEW and Natixis Asset Management will pursue a dual strategy of purchasing existing loans and financing new loans in conjunction with banks.
Christian Delaire, chief executive of AEW Europe, said: “The real estate financing market is experiencing a structural change, with a marked decrease in funding capacity of the banking system, creating an opportunity for the emergence of new participants in real estate debt. The creation of this fund aims to offer our clients access to this new market opportunity. I am also pleased to announce that the fund should complete its first investment shortly.”
Pascal Voisin, chief executive of Natixis Asset Management said: “The combination of AEW Europe’s real estate skills and expertise with Natixis Asset Management’s track record in debt and fixed income provides our customers a unique and effective approach to this market.”
sophia.furber@estatesgazette.com
