Luxembourg-based investment services company, LRI Group, has announced the launch of a private debt real estate fund.
Known as the Aggregate Debt Fund, LRI teamed up with Aggregate Debt Advisory GmbH – an advisory firm specialising in real estate debt – for the product that is aimed at pension funds.
The core strategy involves creating a diversified portfolio of mezzanine loans, with a focus on residential real estate development in Germany. It is seeking an annual return of 6 to 7% over a 7-year period.
LRI Group’s managing director, Frank Alexander de Boer confirmed that LRI will be acting as the alternative investment fund manager. Aggregate will be the investment advisor.
Norbert Kickum, managing director of Aggregate said: “Currently there are few comparable funds on the market that enable professional investors’ access to residential development finance through mezzanine capital in core locations.
“Especially with regard to Solvency II regulated companies, real estate debt offers an advantage over leveraged core real estate funds,” he added.
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