A newly created debt fund by GAM Investments for UK and Western Europe commercial real estate has raised £200m so far this year. GAM will continue to raise money from investors looking for attractive returns in the current low-yield environment. The fund’s debt strategy provides lending to the secured mid-market commercial real estate loan market, which is currently experiencing a funding shortage due to increased regulation and continued de-leveraging in the financial markets.
IPE Real Assets interviewed Jon Rickert, an investment director of GAM’s real estate debt finance team, and he said: “We see great investor demand for this asset class as it can offer attractive returns in the current low-yield environment with a focus on downside protection and valuable diversification to traditional market portfolios.
