Bayerische Versorgungskammer (BVK) has given 鈧�750m for a new vehicle targeting European and US real estate debt.
The fund will focus on stretched senior loans and subordinated loans with blended target returns in excess of 4%.
The announcement comes two weeks after that the 鈧�70bn institution was planning to invest 鈧�3.6bn in a number of real estate strategies.
Loans will be secured against income-producing, institutional-quality assets, with a portion of the fund allocated to development funding.
Targeting deals mainly in Europe and the US, investments are expected to be between 鈧�50m and 鈧�250m per loan.
Andrea Vanni, head of European debt investments at Deutsche Asset Management, said: 鈥淭his new mandate, alongside our 鈧�750m European senior loan fund, allows us to provide junior and stretched senior capital on large European and US transactions.鈥�
The new mandate will bring the total volume of Deutsche AM鈥檚 real estate debt business to 鈧�2bn.
Clemens Schaefer, CIO and head of portfolio management for European real estate, said: 鈥淭his capital raise demonstrates the growing demand for real estate loans by alternative lenders.鈥�
