Aukera refinances €14.6m Dutch value-add portfolio

German investment manager Aukera Real Estate has completed a €14.6 mln senior secured financing for its Aukera Real Estate Debt Fund I. 

Aukera CIO Patrick Züchner and CEO Lars Armgart

This Luxembourg RAIF fund is being used to refinance a diverse portfolio of 22 residential and mixed-use properties in the Netherlands, with a strong emphasis on Breda and Utrecht.
The borrower is a well-established local family office with over 20 years of experience in urban residential and retail properties, including residential conversion projects. The portfolio consists of 22 properties, with 58% residential units and 42% retail and food & beverage spaces. The residential units are small (average 37 m2), targeting students, singles, and young professionals. The small retail units (average 112 m2) are suitable for local businesses in prime city locations.
Currently, the portfolio generates approximately €1.2 mln in annual net rental income with a 63% occupancy rate. After ongoing renovations, the owner anticipates a significant increase, with an independent appraisal estimating a rental potential of €1.72 mln per year at full occupancy – a 43% increase. 
The sponsoring family office manages a total real estate portfolio valued at approximately €330 mln. The financing supports the owner's long-term hold strategy with a moderate loan-to-value (LTV) of around 68%.
Lars Armgart, CEO of Aukera, said: “With this financing, we are supporting a high-quality, granularly diversified real estate portfolio in established Dutch locations. The combination of a strong residential component, clearly identifiable value creation potential, and the borrower’s local expertise results in a highly attractive risk-return profile, exactly the type of investment we are seeking for our debt fund.”
This recent portfolio financing marks the second transaction for the new fund, with €29.6 mln of its total €50 mln equity commitments already deployed.
Aukera notes a persistent, strong demand for alternative financing in the market, primarily due to banks' continued cautious lending practices, which stem from stricter regulatory requirements. 
Armgart added: “I expect to see a stable deal flow in the Netherlands and potentially also in Germany and Austria, especially for residential and mixed-use portfolios. The environment remains challenging, but it creates attractive opportunities precisely for those funds that manage their risks in a clear and disciplined manner.”
For this transaction, Aukera received legal counsel from Voorhorst Van Waegeningh Advocaten and DLA Piper Luxembourg.