Frankfurt, 15th December 2021
– Extensive financing completed for Project CANYON in Frankfurt central business district- Double-digit IRR in mezzanine financing
– Successful cooperation with Munich-based project developer CV Real Estate AG
Prime Capital AG, the independent asset manager and financial services provider based in Frankfurt, announced today the close of a large-volume Real Estate financing for a property company of CV Real Estate AG. Prime Capital arranged significant parts of the overall financing: the senior financing of EUR 90m and a subordinated debt tranche in the amount of EUR 40m for one of its investment vehicles.
Project CANYON is the office development of a landmark property in Frankfurt, in which the factors of sustainability, “new work” and innovative architecture play an important role. The property is located in the central business district of Frankfurt. With a moderate risk profile of the subordinated debt tranche (LTC below 65%) and a strong security package, including subordinated land charges, the financing generates a double-digit IRR. The project development benefits from the continuing stable demand for modern office space in a prominent location in Frankfurt and constant purchase price multiples.
“We are very pleased that we can offer our investors an attractive opportunity to invest in the financing of an innovative Real Estate project with Project CANYON,“ says Stefan Futschik, Head of Private Debt at Prime Capital. “Sustainability and innovation are factors to which we attach great importance at Prime Capital.“
Prime Capitals Real Estate financings have focused on Whole Loans and Mezzanine Loans, including investments in two diversified residential portfolios with a focus on A and B cities, office project developments in attractive locations and a fully let mixed-use Core property. Due to the high demand for Mezzanine capital, attractive returns can still be achieved.
The company already has several large projects and financing opportunities in the pipeline for the coming year. The planned investment volume is in a mid three-digit million range in Whole Loans and Mezzanine Loans.
“With the close of our latest Real Estate financing, we once again underline our role as financier and arranger in the Real Estate segment. We were able to further establish ourselves in the market in 2021, strengthen our Real Estate team and position ourselves more broadly with an experienced Real Estate advisory board“, says Andreas Kalusche, CEO of Prime Capital. “We have also planned attractive investment opportunities for 2022 and are pleased to offer our investors an opportunity to invest in a new strategy with Whole Loan financings at the beginning of the year.“
About Prime Capital:
Prime Capital AG is an independent asset management firm and financial services provider, owned by management and employees. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure, including Renewable Energies and Private Debt. Furthermore, the company offers Access Solutions as well as Investment Advisory & Solutions. Prime Capital was founded in 2006, currently employs more than 100 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of September 2021, Prime Capital has approximately EUR 3.5 bn Assets under Management as well as EUR 6.1 bn Assets under Administration.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, CEO
Questions regarding the content please contact Stefan Futschik
Tel: 0049 69 9686 984 307