Investor interest in mezzanine debt has more than doubled in the past year, according to the latest Investor Intentions survey published by the European Association of Non-listed Real Estate Vehicles INREV.
'Mezzanine debt is the flavour of the year,' confirmed Patrick Kanters, head of global real estate at APG, the asset management vehicle of Dutch pension fund giant ABP. Kanters pointed out that mezzanine debt looked very attractive on a risk-adjusted basis due to the current distortion in the debt market.
'Banks are not out there in the capital stack. I don't see them providing the money.' He added that APG would confine its ventures into mezzanine debt to Europe, in particular the UK, the Netherlands and Germany. 'Vintage is very important, as is timing.' APG is also looking at assets that behave like real estate, he noted. 'We might look at distressed debt too.'
The full article appears in the March edition of PropertyEU Magazine. Click on the link below to subscribe. | 
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