Invesco Real Estate, a global real estate investment manager, has launched its first European debt fund for lending across commercial sectors including self-storage. The Invesco Commercial Mortgage Income – Europe FCP RAIF (CMI Europe) plans to raise an initial €1 billion, according to the source.
“As a commercial actor and a relationship-based lender, this means lending across core real estate sectors such as residential, office, and logistics, as well as alternatives such as self-storage, student accommodation, data centers, and life sciences,” said Andrew Gordon, managing director. The fund will prioritize lending on sustainable assets, he added.
CMI Europe is supported primarily through insurance capital. In its first deal, it provided financing for nine logistics facilities in France and Spain. The fund plans to invest in prospects with the best risk-adjusted returns, the source reported.
“The launch of our first European debt fund underscores the maturity of the sector with the introduction of a pan-European, diversified, open-end vehicle,” said Andy Rofe, managing director and head of Europe at Invesco Real Estate. “The targeted returns for CMI Europe aim to offer a significant return premium over corporate bonds, yet with a similar risk profile and stable cashflows which we believe will be able to provide high quality and predictable quarterly income streams for institutional investors.”
Invesco invests in direct property and publicly traded real asset securities. It has $79.8 billion in assets under management.
