AEW Europe, the London-based pan-European investment, and Paris-based Natixis Asset Management have held a €162 million first close of their second joint European real estate debt fund.
The fund, Senior European Loan Fund II (SELF II), was launched in March with a target equity raising of €750 million. Commitments are being sourced exclusively from institutional investors. The fund will invest in senior real estate loans backed by core office, retail, logistics and hotel properties located in the main European markets.
SELF II has so far completed two investments totalling €45 million through the acquisition of loans secured on a portfolio of offices in the Paris region and a Frankfurt office building.
The partners’ first fund, Senior European Loan Fund I (SELF I), was launched in 2012 and raised €323 million. SELF I was fully invested by July 2015.
“The combined strength of AEW Europe and Natixis Asset Management as well as our pan-European investment strategy allow us to source the best market opportunities for SELF II,” said Cyril Hoyaux, head of AEW Europe’s European debt platform.
“The first two transactions demonstrate our ability to seize opportunities whilst maintaining a selective and focused investment approach. We are currently working on a number of other opportunities and expect to announce other investments in the short term,” Hoyaux added.
“SELF II demonstrates AEW Europe and Natixis Asset Management’s commitment to this market which is expected to see volumes reaching €150 billion in 2016. Our network and market presence provides us access to a large number of transactions on which we undertake a detailed credit risk, portfolio and return analysis. Finally, the Solvency II treatment of SELF II provides insurance companies with an attractive investment,” added Arnaud Heck, head of real estate finance at Natixis.