Pure Funds launches credit fund on the market
The debt fund aims to profit from a financing gap created by Basel III and promises its investors "cherry-picking" loans.
Pure Funds AG is launching the Pure Real Estate Debt L-QIF (PRED). It is intended to grant subordinated mortgages secured by mortgage notes on real estate in the Swiss real estate market. According to the initiators, the fund is aimed at the growing financing gap in the Swiss real estate sector. The background to this is the stricter capital requirements under Basel III, which have led to more restrictive lending by banks.
Maximum loan-to-value of 80%
The fund promises its investors high interest margins, an "attractive risk/return profile" and "stable and calculable returns through individually reviewed and negotiated lending". The maximum loan-to-value ratio at portfolio level is 80%. Because the financing requirements in the real estate sector are high, "cherry picking" can be carried out when selecting loans.
The first subscription period ends on March 31. A reduced issuing commission and management fee will be applied in the first twelve months. (aw)
