Deutsche Real Estate Funds (DREF), the student housing investment manager, has signed an 18-month revolving credit facility with European credit asset manager Chenavari Investment Managers, securing around €50 mln for further investment in student residences.
Deutsche Real Estate Funds (DREF), the student housing investment manager, has signed an 18-month revolving credit facility with European credit asset manager Chenavari Investment Managers, securing around €50 mln for further investment in student residences.
Following this deal, DREF now has €150 mln of investment capital available to fund growth in 2016.
'In 2015, we invested €135 mln in student accommodation facilities in Germany. In 2016, we plan to at least double the size of the portfolio as we ramp up activity across the business,' commented Felix Bauer, CEO and CSO of Deutsche Real Estate Funds Advisor. 'The revolving credit facility provides us with the necessary flexibility to move fast once we’ve selected an attractive value-add opportunity. In current market conditions, speed is a major factor in determining success as demand for good quality residences in central locations is extremely competitive.'
DREF last year was the first player to issue a bond for the funding of student housing in Germany, giving institutional investors access to this form of investment for the first time.
'DREF’s first bond issue to finance student accommodation facilities established this type of investment for German institutional investors,' added Sam Mellor, partner and senior portfolio manager for European real estate funds at Chenavari Investment Managers.
Chenavari Investment Managers is an asset manager focussed on credit, real estate and structured finance with $5.4 bn in assets under management on behalf of its clients.