iii makes first real estate debt deal

The German firm, led by Reinhard Mattern, has received a new commitment for its second real estate debt fund, taking its available capital past €300 million as it inks its first deal.

German real estate specialist iii-investments has made its first real estate debt investment, having earlier received a commitment from another institutional LP for its blind-pool vehicle.
iii manages two real estate debt funds. The first is structured as a managed account on behalf of one institutional LP which committed €200 million, while the second is a blind pool fund. The new commitment to the latter brings iii’s total pool of capital beyond €300 million, according to the firm.

“Together with the current fund contribution, [the blind pool fund] has a capital commitment well in excess of €100 million at its disposal,” the firm said in a statement. “The plan is to carry on topping up gradually until a target volume of about €300 million.”

In addition, the firm has signed its first deal, investing €30 million in a syndicated loan arranged by Deutsche Bank to fund the acquisition of a residential portfolio in North Rhine Westphalia in Germany.

“With this contribution to the financing of a widely diversified residential portfolio we have succeeded in making our first debt purchase on attractive terms. As we have received a number of further interesting enquiries from different banks, we are optimistic about being able to place out investors' capital swiftly”, said Reinhard Mattern, managing director of iii. The junior tranche of the financing has a term of 10 years. The sum is being made available by the two existing funds in equal parts, iii added in the statement.