Essen-based investment manager Aukera Real Estate AG has completed the second closing for its current debt fund. HUK-Coburg Asset Management GmbH, responsible for asset management at the insurance group of the same name, is substantially expanding its position as anchor investor. The institutional commitment has been doubled from an initial EUR 50 million to EUR 100 million.
The capital is being deployed into the Aukera Real Estate Debt Fund I, structured under the Luxembourg legal form of an S.C.A. SICAV RAIF. The targeted total volume of the pooled fund is EUR 500 million. Institutional investors from the DACH region can participate in the investment vehicle from a minimum investment of EUR 1 million.
Conservative risk profile and focus on core markets
The fund exclusively originates senior-secured real estate loans and explicitly excludes subordinated structures such as mezzanine debt or preferred equity. In addition, no debt leverage is employed at fund level. Geographically, the focus is primarily on Germany, Austria and the Netherlands, with selected markets in continental Europe serving as expansion options. Financings target established locations across the residential, office, logistics, retail and mixed-use sectors, as well as selected hotel assets.
- —Loan sizes typically between EUR 10 million and EUR 20 million, rising up to EUR 40 million as fund volume grows
- —Typical loan terms of two to three years
- —Loan-to-value/loan-to-cost ratios (LTV/LTC) in the range of 70 to 75 per cent
- —Target IRR of around 7.5 to 8.0 per cent per annum with an interest margin of approximately 400 basis points over the swap rate
According to Patrick Züchner, Chief Investment Officer at Aukera Real Estate, the shifted interest rate and market environment offers attractive opportunities for senior financings. Alongside classic whole-loan structures for existing properties, the fund also provides solutions for special situations. These include bridge financings ahead of disposals, loans for energy-efficiency refurbishments, and facilities to complete stalled development projects, provided they demonstrate a commercially viable outlook.
Deployment of capital and outlook
Maximilian Cosack, Head of Private Asset at HUK-Coburg Asset Management, explains the increased commitment by pointing to positive experiences to date and a relationship of mutual trust with the fund management team. More than half of the committed EUR 100 million is already drawn or firmly allocated. Against this background, Aukera expects to close further financing transactions before the end of the current year.
