Intreal has entered the business of real estate private debt in response to strong demand.
The administration specialist will offer real estate loans as an Alternative Investments Fund Manager (AIFM) and central administrator via its Luxembourg-based subsidiary, Intreal Luxembourg S.A.
“Real estate private debt funds, while representing only a minor fraction of the debt fund universe, registered fast growth in this segment over the past few years”, said Tim Keifer, Managing Director, Intreal Luxembourg. “Demand among institutional investors remains as strong as ever and growth continues, despite the recent interest rate hike”.
Kiefer, who has extensive experience in this segment, has been in charge of the new business line since 2022.
“Luxembourg is the place to be for real estate debt funds”, said Rudolf Kömen, Managing Director, Intreal Luxembourg. “Compared to the regulatory regimes of other countries, it is an excellent domicile for setting up funds of this type and the sheer diversity of Luxembourg vehicles provides the necessary flexibility”.
A new specialised team will be in charge of lending and loan administration at the Luxembourg office. The team will use SAP Loans Management (CML) as an add-on module to its accounting software, which will make Intreal one of the few providers on the market offering a dedicated loan management function and extensive reporting, said Kiefer.
In addition, Intreal Luxembourg plans to expand its regulatory licenses. The company is currently following the approval procedure for AIFM licences for the asset classes “real estate funds of funds” and “infrastructure funds”. The licences are expected to be issued in 2023.
Intreal is currently in talks with various asset managers who intend to launch debt funds with the group and expects the first fund to go live in Q1 2023.