Media Release
ARA Venn Reaches €300 Million of LP Capital for its Latest Fund, VeCREF I

United Kingdom, 29 November 2021 – ARA Venn has held a further closing for its latest whole loan real estate debt fund, Venn Commercial Real Estate Fund II1 (“VeCREF II”), which has now surpassed €300 million. Capital commitments were received from a variety of institutional clients including insurance companies and pension funds, sourced from the UK, Germany and Canada.

VeCREF II invests in whole loans secured by commercial real estate assets across Western Europe, targeting a net IRR of mid-to-high single digits with quarterly income distributions to investors. VeCREF II’s investment strategy targets mainly whole loans secured by assets with strong fundamentals in France, Germany, Ireland, the Netherlands, Spain and the United Kingdom. The Fund takes advantage of valuation repricing and the continued withdrawal of traditional lenders by investing in compelling opportunities where there is a gap between capital demand and supply.

The team has made over €187 million of high relative value investments across seven loans to date and is closing on an additional €32 million loan with another high-quality borrower imminently. Full deployment is expected to be achieved over the next four to six months. VeCREF II loan investments have to date included an office property in Greater London, UK, a granular PRS portfolio across Spain, an office building in Dublin, Ireland and a purpose-built student accommodation asset in Malaga, Spain. The portfolio continues to display an attractive return at a relatively low average LTV of 61.5%, reflective of the favourable market conditions for real estate debt.

VeCREF II is on track to reach its target raise of €400 – €500 million in the first half of 2022, based on  strong investor appetite from global institutions.

Paul House, Managing Partner and Head of the Commercial Real Estate team, commented, “We are pleased with the continued success of VeCREF II and, in particular, with the quality of the portfolio we have secured for our investors, as well as with the strong pipeline transactions we are reviewing for the Fund”.

Beatrice Dupont, Partner and Portfolio Manager for the VeCREF fund series said, “We are once again delighted with the demand for this round of fundraising and grateful for the support of our latest investors. We are pleased that our investor group includes a variety of institutional firms and welcome several new investors from the German insurance industry.

We look forward to building upon the important relationships we have fostered for the continued success of the Fund.”

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