ACOFI fund heads towards €500m

The French investment firm’s interim closing for its fourth CRE debt fund has reached €420m in commitments with a further €100m possible.

ACOFI, the Paris-headquartered fund manager, has secured approximately €420 million in commitments for PREDIREC Immo IV, its fourth CRE debt fund.

The firm also said that other investors were conducting due diligence for commitments which could potentially add another €100 million.

Investors mainly consist of institutional investors, a number of which, according to ACOFI’s description, are “medium-sized”.

The fund has already been highly active in the market, acquiring almost €300 million in loans by the end of September. The loan portfolio is backed by a variety of office, residential, commercial and hotel assets.

Target markets for the fund, which has a pan-European focus, include France, the Netherlands, Belgium, Germany, Italy, Austria and Spain.

ACOFI said it has a “strong pipeline of opportunities” which makes it confident that the fund will deploy its capacity before the end of H1 2017.

The firm added that the fund so far has an average debt ratio (loan to value) of less than 60 percent and a gross margin of approximately 250bps (weighted average).

“This favourable result is due to a diversified origination capacity, combined with a strong relationship with leading European banks,” said Philippe Deloffre, the firm’s head of CRE debt funds.

ACOFI has funds under management in the asset class of almost €1 billion.