Aukera Real Estate raises €275m for debt fund

German investment boutique Aukera Real Estate has announced the first closing of its real estate debt fund with €275 million ($322 million) in capital commitments. The first institutional investor was a German life insurance company.

The vehicle, which was established as a Luxembourg-based fund in the third quarter of the year, will focus on commercial real estate financing in continental Europe. The financing spectrum will consist of senior and mezzanine debt, as well as project financing and short-term bridge loans.

“Investors’ appetite for managed debt capital investments is high,” noted Lars Armgart, CEO of Aukera. “One of the key reasons for this is that over the past few years, in spite of price increases and the associated falling equity capital returns in the real estate market, we have been able to offer above-average risk-return profiles for investors with our asset class real estate debt.”

Armgart noted the deal flow during the first 10 we