Amundi, a European asset manager with more than €1.4 trillion ($1.67 trillion) in assets under management, has launched a real estate debt strategy offering exposure to euro zone senior real estate debt. The strategy will predominantly invest in loans with floating rates, thereby offering a hedge against rising interest rates. The quality of the collateral against the loans means that the strategy has an attractive cost ratio for insurers under Solvency II.
The euro zone real estate finance market is characterized by its size and diversity. Issuance is more than €100 billion ($119 billion) a year across Europe, 10 percent of which is in France. It is highly diversified across subsectors (offices, retail, hotels, logistics, etc.) and borrowing counterparties. Senior mortgage loans have strong protection, including delegation of rents and therefore offer a reduced risk profile.
The strategy has been developed by Amundi’s Alternative and Real Assets Platform, whic
