Empira Group, investment manager for institutional real estate investments in German-speaking Europe, has launched Empira Real Estate Finance fund IV, the company's fourth debt fund by now.
"The new fund offers an innovative Joint-Venture-approach," said Lahcen Knapp, CEO of Empira Group.
The product combines mezzanine capital with relatively low current interest rates and a share in the financed property. The fund's volume is €500m and a first loan has already been handed out.
The fund hands out subordinated mezzanine loans and is targeted at developers in Germany, Austria, Switzerland and the Benelux region that are looking to purchase land or properties to develop residential or commercial projects. It seeks to acquire a 50% share in financed developments with a minimum total investment volume of €150m.
"Institutional investors benefit from the current interest and at the same time can participate in the value creation," said Knapp. "Developers, in return, receive attractive mezzanine capital and thus an alternative to conventional bank financings," he added.