FAP Invest seeks €250m for German real estate debt

The Luxembourg-based vehicle hopes to surpass the efforts of pan-European funds with a strong focus on German assets.

Berlin-based asset manager FAP Invest is launching a €250 million Germany-focused real estate debt fund, PERE sister publication Private Debt Investor has reported.

Its Luxembourg-based vehicle, FAP Balanced Real Estate Financing I, will provide mezzanine loan financing for portfolio properties, revitalization projects and project developments in Germany. It will also be able to make select investments in the Netherlands and Austria. It will finance residential, office, retail and hotel properties.

The fund is a regulated SICAV-SIF and Bank of Hauck & Aufhäuser Luxembourg will act as AIFM fund manager, while FAP Invest will act as investment consultant and advisor to the fund. Greenberg Traurig Germany acted as legal advisor to the fund while pwc is its external accountant. VictoriaPartners advised on the fund structuring and fundraising.

FAP’s fund has a five-year lifespan with two one-year extensions and will seek investments from €5 million upwards. It is targeting institutional investors and its master/feeder structure enables taxed and untaxed investors to access the fund. The fund has been speaking to investors in Europe, North America and Asia.

The firm said most debt funds that currently invest in Germany have a pan-European focus and have not tailored their offerings to the German market.

“Due to the market parameters they [pan-European funds] can only very seldom provide financing conditions that fit the individual German financing market. This is the gap that our fund offer will fill,” said Curth-C Flatow, founder of FAP Group.

Hanno Kowalski, managing director of FAB Invest, added: “We are entering the market with attractive pricing so that we can secure good addresses with good track records and projects. The clear premise for this is: We do not want to finance everyone but in the interest of our investors to accompany borrowers with an excellent track record and good projects.”