Real One Capital Partners is setting up a Debt Investment Fund for the purpose of investing in real estate development projects in Europe.
The principal objective of the Fund is to generate top-tier risk adjusted returns by providing short- and medium-term (Bridge and Mezzanine) Loans to real estate developers and property buyers/owners for further real estate development or redevelopment. The Fund’s investments will be focused on the residential, mixed-use, commercial and hospitality real estate projects with Value Add and Opportunistic real estate strategies.
A stable demand and the growth in prices for real estate, observed recently in large European cities, urges the developers to increase the volume of construction and, as a result, to search for new projects. Many developers are interested in early acquisitions of such projects, but most prefer to spread their equity among as many available projects as possible, thus trying to consummate a purchase using a minimum amount of own equity, using borrowed capital.
However, lately fewer and fewer banks are ready to provide developers with the loans for the acquisition of property on “upon request basis” – relatively quickly, while financing up to 100% of construction costs. This situation forces developers to seek alternative financing at much higher rates than usually charged by the banks
Evgeny Redkin, the Managing partner of Real One Capital Partners
The Fund's primary geographic focus will be on the projects located in the capitals and the Second -Tier cities of Germany, Austria, Spain, Portugal and Luxembourg, showing solid economics, positive demographics, established markets and deep domestic liquidity.
