Natixis Asset Management and AEW Europe have partnered to launch a Senior European Loan Fund with a first close of €240 million in equity. The fund, which is the first subfund of a closed-end seven-year fund structure investing in senior real estate loans, is targeting an investment capacity of €500 million.

The Senior European Loan Fund will invest in senior real estate loans, targeting office, retail and logistics assets, primarily in France, Germany and the United Kingdom. The fund’s dual investment strategy comprises both financing new loans in partnership with banks and purchasing existing loans.

“The real estate financing market is experiencing a structural change with a marked decrease in funding capacity of the banking system, creating an opportunity for the emergence of new