Essen-based investment manager Aukera Real Estate AG has achieved the second closing for its real estate debt fund Aukera Real Estate Debt Fund I. The decisive factor was the expanded commitment from HUK-COBURG Asset Management GmbH (HAM). The asset management unit of the HUK-COBURG insurance group acts as anchor investor and has doubled its capital commitment from an initial EUR 50 million to EUR 100 million.
Structured as a Luxembourg S.C.A. SICAV RAIF, the investment vehicle is targeting a total volume of EUR 500 million. Institutional investors from the German-speaking region can participate with a minimum commitment of EUR 1 million. More than half of the now committed EUR 100 million in capital is already invested or firmly allocated.
Clear criteria for senior financing
The fund primarily provides whole loans for standing assets and strictly excludes mezzanine capital, preferred equity, and debt at fund level. The focus is on senior-secured loans in Germany, Austria, and the Netherlands, with the investment universe broadly extending to other markets in continental Europe. Financed properties are situated in good locations across the residential, office, logistics, retail, and mixed-use sectors, as well as selected hotel assets.
- —Loan volumes regularly between EUR 10 and 20 million, with potential for up to EUR 40 million
- —Loan terms typically spanning two to three years
- —Loan-to-value or loan-to-cost (LTV/LTC) ratios in the range of 70 to 75 per cent
- —Target IRR return of 7.5 to 8.0 per cent per year at an interest margin of around 400 basis points over the swap rate
Alongside standard financing for existing properties, the fund acts as a tool for special situations. These include bridge financing ahead of a sale or for the execution of energy efficiency measures. In individual cases, Aukera also assists schemes in near-insolvency scenarios to complete stalled building projects, provided the assets offer a viable long-term economic outlook.
Growth prospects in the current market environment
Patrick Züchner, Chief Investment Officer at Aukera Real Estate, views the increased commitment as a vital vote of confidence from the anchor investor. He noted that the current market environment presents attractive opportunities to assemble a broadly diversified portfolio in a selective manner with adequate downside protection. The firm expects to conclude further transactions during the current year.
Maximilian Cosack, Head of Private Assets at HUK-COBURG Asset Management, cited positive past experiences and a close relationship of trust with the fund managers as the reasoning behind the move. The EUR 100 million commitment aligns seamlessly with the insurance group's institutional real estate debt allocation.
