Empira launches 500 million loan fund
Empira AG from Zug is launching the credit fund Empire Real Estate Finance Fund III. It is to reach a volume of 500 million euros and achieve a distribution yield of four percent.
The investment manager Empira is expanding its business segment with a financing fund that grants senior secured loans. The new Empira Real Estate Finance Fund III has a target volume of EUR 500 million and grants loans with LTVs in the higher double-digit range. The fund is intended to provide financing for investments in residential and commercial real estate as well as project developments in Germany, Austria, Switzerland and the Benelux countries. The target return is approximately four percent p.a. (IRR) is targeted.
To date, the company has launched two financing funds in the mezzanine area: Empira Residential Bridge Fund, launched in 2016, is a financing fund focused on existing properties and ongoing cash flow. The 2017 Empira Bridge Finance Fund II focuses on project developers. Both funds issue subordinated loans, with the new fund offering senior financing for the first time.
"We are observing that institutional investors are increasingly discovering the debt side for their investments and want to invest here," says Lahcen Knapp, CEO of Empira AG. "We expect to have invested the capital raised within a year."
