FAP launches Germany-focused Real Estate Debt Funds
- Luxembourg based "FAP Balanced Real Estate Financing I" will make 250 million Euros of mezzanine capital available for real estate and property investments
Frankfurt/Berlin, 19th June, 2018. With “FAP Balanced Real Estate Financing I” this week a new real estate debt fund is being launched for mezzanine loan financing of portfolio properties, revitalisation projects and project developments in Germany, as well as selectively in the Netherlands and Austria.
The “master/feeder” fund, based in Luxembourg with the legal form of a fully regulated S.C.Sp., SICAV-SIF, will provide mezzanine capital in the coming years amounting to 250 million Euros for investments with a focus in the asset classes: residential, office/business, retain and shopping as well as hotels. The Bank of Hauck & Aufhäuser Luxembourg functions as a fund manager (AIFM), FAP Invest GmbH from Berlin takes over the role of the investment consultant and advisor. Prestigious companies such as the law firm Greenberg Traurig Germany, LLP, pwc as external accountants and VictoriaPartners for the area of structuring and fundraising have all taken part in the construction of this setup.
The fund is set to run for 5 years (with two extension options, each for the duration of one year) and expects subscription possibilities, particularly for institutional investors, beginning at 5 million euros. Due to the legal division of master and feed funds investors subject to taxation as well as tax-exempt investors can be taken into consideration. Various investors are being included in parts of the investment strategy within the framework of an investor committee.
Curth-C. Flatow, Founder of the FAP Group that has initiated the fund: “There are some debt funds in Europe that could also do business in Germany. Most of these funds, however, have a pan-European focus and have consequently directed their financing conditions to a pan-European market. Due to the market parameters they can only very seldom provide financing conditions that fit the individual German financing market. This is the gap that our fund offer will fill. Most recently we have spoken to American and Asian investors. Even if there are markets, in which better return on investment can be achieved, there are also good reasons for international investors to be invested in the most significant real estate and property market in Europe, in Germany.”
Hanno Kowalski, Managing Director of FAP Invest GmbH, adds: „With our unique track record as an investment advisor and consultant representing 13 years of experience in the area of real estate and property financing, we offer investors the opportunity to participate in the chances of the German real estate market with stable and calculable cash and payment flows at a calculable risk, without having to build up their own infrastructure. From the viewpoint of the borrower, 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.
About the FAP Group
The FAP Group is one of the leading independent consulting companies for the procurement and structuring of capital for real estate investments and project development in Germany. FAP was awarded the title of “Property Debt Investor of the Year” by the renowned Europe Property Finance Awards 2016 of the Magazine Property Investor Europe (PIE).
The services of the one-stop single source agency ensure total financing from loan capital and when appropriate equity capital replacement funds. These services are among other things for transactions and projects, which is the reason for being engaged by buyers, sellers, investors, capital-seekers and agents.
FAP with its headquarters in Berlin was founded in 2005 by Curth-C. Flatow and has since then advised and structured capital at a volume of over € 14 billion.