Bridging the gap in real estate finance
A specialised real estate bridge financing fund targeting 8-10% annual net returns
Bridging the gap in real estate finance.
Emerald Managements Luxembourg did locate another niche strategy within the bridge lending market, where additional returns at moderate risk could be achieved, which is to provide financing to developers during the phase of the development of their project when they are requesting to the local town the permit to start building, where banks do not lend anymore from 2008, although prior 2008 were lending openly. New regulation (BASSLE III and BASSLEE IV) has made such type of loans very expensive in terms of capital consumption and thus they have retreated into loans which consume less capital allowing niche lenders like us to enter such market.
We created Emerald Mezzanine Fund, which will focus on providing loans during the phase where the developer is requesting the permit to the local town to start building his project. The key characteristics of the fund are:
“An investment in knowledge pays the best interest”
Why the Emerald Mezzanine?
Fund Highlights
- Open ended, with monthly subscriptions and quarterly redemptions with 120 days notice.
- Monthly NAV reporting.
- Expected yield of 12%-15%
- 1,5% management fee plus 20% performance above 8%.
- Euro based fund with USD and CHF availability.
- Short average duration of loans, 18-21 months average of portfolio vs. 3-5 year loan maturity in standard mezzanine funds.
- European country diversification.
- Majority of loans senior.
- 4% semianual dividend availability.
