AEW Europe and Natixis AM have launched a second real estate debt fund
Following the success of Senior European Loan Fund1, AEW Europe and Natixis Asset Management have launched a new real estate debt fund*: Senior European Loan Fund II2 (SELF II). Following its launch in March, SELF II has completed a first closing raising €162 million. SELF II is being marketed only to institutional investors3 and the target equity raising is €750 million.
SELF II will benefit from the combined real estate and credit expertise of AEW Europe and Natixis Asset Management. The fund will invest in senior4 real estate loans supported by core office, retail, logistics and hotel assets located in the main European markets. SELF II has already completed two investments totalling €45 million through the acquisition of loans secured on a portfolio of office assets in the Paris region and an office building in Frankfurt.
Cyril Hoyaux, Head of AEW Europe’s European Debt Platform commented: “The combined strength of AEW Europe and Natixis Asset Management as well as our pan-European investment strategy allow us to source the best market opportunities for SELF II. The first two transactions demonstrate our ability to seize opportunities whilst maintaining a selective and focused investment approach. We are currently working on a number of other opportunities and expect to announce other investments in the short term.”
Arnaud Heck, Head of Real Estate Finance at Natixis Asset Management added: “SELF II demonstrates AEW Europe and Natixis Asset Management’s commitment to this market which is expected to see volumes reaching €150 billion in 20165. Our network and market presence provides us access to a large number of transactions on which we undertake a detailed credit risk, portfolio and return analysis. Finally the Solvency II treatment of SELF II provides insurance companies with an attractive investment.”
SELF 2 has been notified to the regulator in Belgium, France, Germany, Luxembourg, Netherlands, Sweden and UK.
The Fund is subject to specific risks, including: Borrower credit risk, Tenant credit quality, Real estate asset value (as collateral) value, Liquidity, Diversification. An investor’s capital will be at risk; you may get back less than you invested. For a complete discussion of risks (and benefits) of investing in the Fund, please refer to the section 3.7 “Risk Factors and Investment Considerations” of the Fund Offering Memorandum.
For further reading: Real estate debt is gathering momentum among bond investors.
1: Senior European Loan Fund I, a €323 million real estate debt fund, was launched in 2012 and fully invested in July 2015
2: Senior European Loan Fund II is a sub-fund of the Senior European Loan Fund SCA-SIF, a specialised investment fund under Luxembourg law, managed by AEW Luxembourg. Natixis Asset Management and AEW Europe acts as a consultant with AEW Luxembourg. SELF 2 is an Alternative Investment Fund (AIF) that is neither notified in all countries nor available to all investor types.
3: The subscription and acquisition of interests in the Senior European Loan Fund are restricted to certain types of institutional investors who meet the definition of Well Informed Investors as set out in the Luxembourg Law of 13 February 2007 relating to specialised investment funds.
4: Senior debt benefits from priority payment and specific guarantees compared to other forms of subordinated debt.
5: Source Natixis Asset Management
Source: AEW Europe and Natixis Asset Management
Subsidiary of Natixis Asset Management Group
Privately-held French Société anonyme à conseil d'administration.
RCS Paris B 409 039 914
8-12 rue des Pirogues de Bercy
Tel: +33 (0)1 78 40 92 00
Natixis Asset Management
Limited liability company – Share capital €50,434,604.76
Regulated by AMF under no. GP 90-009
RCS Paris n°329 450 738
21 quai d’Austerlitz
75634 Paris Cedex 13
Tel. +33 1 78 40 80 00
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced, are as of 25 May 2016 and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material. This material may not be distributed, published, or reproduced, in whole or in part. Although Natixis Asset Management and AEW Europe believe the information provided in this material to be reliable, it does not guarantee the accuracy, adequacy or completeness of such information.