DWS launches new European junior real estate debt fund for institutional investors
DWS today announced the first close of a new European Junior Real Estate Debt Fund with capital commitments of EUR 150 million. This marks the launch of DWS's sixth real estate debt fund.
This European Property Debt Fund will focus on building a subordinated (junior) loan portfolio secured by high-quality pan-European core/core+ real estate, targeting a high single-digit rate of return (IRR) at a maximum loan-to-value (LTV) of the portfolio of 75%. It is targeted at institutional investors across Europe and is expected to reach a total volume of approximately EUR 500 million.
Alexander Oswatitsch, Head of Real Estate Debt, Europe: "This is another milestone for our real estate debt platform, which also reflects confidence in our underwriting expertise and strong sourcing and closing power. Since the launch of our European Real Estate Debt platform in 2014, more than 50 deals have been closed, building a network of long-term industry relationships."
Jens Witzke, Head of Private Debt, Investment Specialists: "Private Debt is valued by institutional investors primarily for its diversification effect, attractive risk-adjusted returns and reliable income stream."
DWS's real estate debt platform, which has been expanding since 2014, covers European transactions through offices in London, Frankfurt and Paris. In total, six European senior and junior strategies are now managed in the form of client mandates and as open-ended or closed-end funds, with a total volume of EUR 2.5 billion.
DWS - Real Estate
DWS has been investing in real estate assets for 50 years. As part of the Alternatives platform, the real estate business has more than 450 employees around the world and EUR 76 billion in assets under management as of December 31, 2021. Providing a diverse range of strategies and solutions across the risk/return and geographic spectrums, we offer core and value-added real estate, real estate debt, real estate securities and opportunistic real estate. The real estate investment business employs a disciplined investment approach and aims to deliver attractive long-term risk adjusted returns, preservation of capital and diversification to its investors, which include governments, corporations, insurance companies, endowments, retirement plans, and private clients worldwide.
About DWS Group
DWS Group (DWS) is one of the world's leading asset managers with EUR 902bn of assets under management (as of 31 March 2022). Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.
We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping navigate the transition to a more sustainable future. With approximately 3,600 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.