Real Assets

Commercial Real Estate Debt

October 06, 2020

The Commercial Real Estate Private Debt division was established in 2016 at Prime Capital and has since then experienced strong growth.

Prime Capital’s Real Estate Private Debt was established in 2016 and has grown at an above-average rate ever since. The team concentrates on structuring tailor-made financing solutions for residential and commercial real estate. In particular, the focus is on debt financings in all forms of residential projects, in addition to the asset classes office, logistics and retail (food retailers and supermarkets). The selection of the properties to be financed is accompanied by both existing properties (Core, Core+ and Value-add) and project developments. In terms of markets, we focus on our German home market, as well as on accompanying our sponsors primarily to France, Benelux, Austria and the Nordic countries.

Your advantages of Commercial Real Estate Debt

  • An investment in CRE Debt offers investors the opportunity to participate in the real estate market
  • Debt investments are significantly less risky than equity investments, due to the underlying collateral structure
  • Market value reductions of the underlying asset have no immediate impact on the debt position
  • Increasing demand for private debt solutions, as traditional lenders are reducing their credit volume, partly for regulatory reasons
  • Attractive return due to above-average interest rates on real estate loans in combination with moderate credit risks, based on optimised collateral structures

Our services within Commercial Real Estate Debt

  • Long-term business relationship with local sponsors in order to generate attractive private market financing requests
  • Lean and efficient underwriting process by applying an institutional framework similar to established banking procedures
  • Solution-oriented communication in the event of performance disruptions in conjunction with corresponding restructuring expertise
  • As signatory of the UN PRI, the Sustainable Development Goals (SDG) are reflected in our investment strategy and are fully implemented in our funds and mandates

In addition to our fund solutions, we are also keen to set up separate managed accounts with individual investment profiles.

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