FAP’s mezzanine debt fund exceeds EUR200m mark

FAP Group has recorded the largest individual investor commitment so far for the FAP Balanced Real Estate Financing I Fund, a EUR50 million contribution by a German insurer, which brings the equity volume to over EUR200 million in total.

Hanno Kowalski, Managing Partner of FAP Invest, says: “The FAP debt fund has been successfully established in the market and attracts high demand from our investor partners. Following the largest individual investor commitment to date, we expect further capital inflow of around EUR50 million in the third quarter. Activity on the lending side is also imminent: We are currently finalising credit allocations in the double-digit millions.”

FAP’s debt fund FAP Balanced Real Estate Financing I Fund was launched at the end of 2018 to allocate subordinated capital to existing properties, revitalisation projects and developments in Germany. The vehicle, positioned as “core mezzanine”, has distributed a volume of over EUR80 million over the past months. 

Among the projects financed is a revitalisation on Düsseldorf’s Königsallee high street, the development of a plot in Frankfurt as well as maximising financing for the acquisition of a residential asset in central Berlin, close to the iconic KaDeWe department store.