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Laxman Pai, Opalesque Asia: Generali Real Estate, the property asset management arm of Italian insurer Generali, has launched a second commercial real estate debt fund to invest across Europe.
The manager said the Generali Real Estate Debt Investment Fund II (GREDIF II) has a target size of €1bn and will invest in senior debt loan financing opportunities, with a loan-to-value of up to 60% and variable rates. It raised €1.45 billion for its predecessor fund, which was launched in 2019
Through the Luxembourg domiciled GREDIF II, Generali will focus on providing financing facilities with a loan-to-value of up to 60 percent.
According to the press release, in the current growing interest rates environment, commercial real estate debt offers investors a defensive exposure to real estate, fairly stable returns despite the market volatility (especially for well-diversified portfolios with a multi-sector and multi-country approach, with a disciplined investment strategy), as well as hedging opportunity for interest rates hike.
"For these reasons, paired with the shift in the debt market which sees banks covering a smaller market share compared to the past, and consequently more opportunities for private alternative lenders, the CRE debt market in Europe is witnessing significant growth: in 2021, real estate debt has represented 50% share of the real estate European market, corresponding to about € 180 bn," it added.
The GREDIF II aims to capture th...................... To view our full article Click here
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