RiverRock European Capital Partners has launched its first real estate mezzanine debt fund.
European and Middle Eastern institutional and family office investors backed the fund.
The London-based firm is targeting manage-to-core commercial real estate opportunities in Europe, with a focus on German value-add commercial real estate in the country鈥檚 B cities.
RiverRock said it intended to originate such loans between 鈧�5m and 鈧�15m on 2-4 year terms.
Nicolaus Harnack and Franz Lucien Moersdorf will manage the fund.
Harnack said: 鈥淲e see attractive mezzanine investment opportunities in Germany, particularly in transactions where greater flexibility and a willingness to work with the owner is required.
鈥淎 more rigorous regulatory regime has also reduced the willingness of many larger lenders to look positively at smaller markets.鈥�
Sectors considered particularly attractive for the fund include retail, office and logistics.
The firm said it would also consider hotels, as well as residential properties.
