CAERUS hits €500m investment milestone

The Dusseldorf-based real estate debt manager secured more than half of the loans against offices and the rest against hotel, residential and logistics properties.

CAERUS debt investments has placed around €500 million in loans secured on German and Austrian real estate in the last 12 months.

Attractive yields and stable cash flows from the properties have proved decisive factors for the lending, CAERUS chief investment officer Patrick Zuchner, said in a statement. 

More than half of the loans extended were against office properties. The balance was made against hotel, residential and logistics properties. The real estate manager has also recently financed two hotel portfolios comprised of 17 properties.

Michael Morgenroth, chief executive officer at CAERUS, said: “The last 12 months have shown that the market for alternative financing models, outside traditional bank loans, is ever-increasing in importance.” 

Morgenroth said that the trend is not limited to Germany, with the firm increasingly receiving financing applications the Netherlands, Belgium and Luxembourg.

CAERUS manages three separate account mandates, which invest in whole loans. It also oversees a private real estate debt fund focused on mezzanine loans. The former targets returns in the low to mid-single digits, while the pooled fund targets IRRs of 8 to 12 percent.

German insurance company Volkswohl Bund upped its separate account mandate from €200 million to €300 million in July this year. 

In total, the firm has raised €850 million to invest in real estate, PDI understands.