Fiera Real Estate UK has launched an open-ended pan-European real estate debt fund that will invest into senior secured, investment-grade real estate debt loans.
The fund is targeting 10%-plus net internal rate of return and has secured £100m in seed commitments. This is in addition to £200m of commitments targeting higher-yield UK opportunities across the debt platform.
The fund will invest across multiple sectors, including residential, logistics, grade-A offices, leisure assets and hotels. The focus will initially be on the UK market before it expands to select European jurisdictions.
Charles Allen, head of European real estate at Fiera Real Estate, said: “Private credit is an important addition to an institutional portfolio and the launch of our fund is a natural next step in the development of our product offering.
“We are well positioned to offer our clients strong risk-adjusted returns across Europe at a very compelling time in the market cycle”.
David Renshaw, co-head and managing director of debt strategies, added: “The opportunity set within private real estate credit was already a compelling one, but rising interest rates coupled with mainstream lenders having to deal with heritage loan books and reducing credit supply means the timing of our fund launch is opportune.
“We believe private real estate credit will continue to grow and play an increasingly important role for both borrowers and investors within the European real estate landscape over the coming years, and the launch of our fund is a testament to that belief.”
Fiera said the new fund would promote environmental and social characteristics through its approach to lending to ensure it backs borrowers, sponsors and assets that align with the firm’s ambition to drive positive change and contribute to a low carbon economy.
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