FAP launches real estate debt advisory platform

The firm has introduced Germany’s first real estate debt advisory platform looking to give institutional investors and investment managers better access to direct real-estate investments.

FAP Investment Management has introduced a platform allowing certain investors access to sourced debt investments in German real estate, PERE's sister publication, Private Debt Investor, reported Monday.

The firm is billing the platform as the first of its kind for the German market. According to a company announcement, FAP is targeting institutional investors, such as pension funds and insurance companies, together with asset managers, with the new platform.

The firm is launching the platform due to the lack of access investors have to real estate debt investments via the existing broker and advisory channels, a spokesman for FAP said. He added historically low interest rates and changing regulations have elevated the demand for real estate debt investments.

The platform is an advisory offering helping identify and verify direct investment opportunities within the real-estate sector, the announcement says. The fee structure for the service will involve a combination of an acquisition fee together with fees for management and profit sharing, the spokesman for FAP told PDI. The fee will differ depending on each client, he added.

The platform offers access to senior loans, mezzanine and equity investments. The firm may also be adding other capabilities during the year, according to the announcement.

Markus Mirbach, the firm’s head of investment management, is quoted as saying FAP is looking at developing new products throughout 2017, including mezzanine funds. Mirbach will be heading up the new platform, the announcement notes.

FAP is a consultancy aiming to provide clients in the procurement and structuring of real estate investments, as well as development projects in Germany.