Generali Real Estate is launching is second commercial real estate debt fund – Generali Real Estate Debt Investment Fund II (GREDIF II).

Generali Real Estate is the commercial real estate asset management business of Italian insurance group Generali.

The target size for this fund is EU 1bn. It is the successor to the first GREDIF, launched in 2019 which raised EUR 1.45bn. The first fund has been fully deployed.

The new fund already has commitments from Generali group companies, and is looking to add external investors.

GREDIF II will finance office, logistics and residential real estate in continental Europe and the UK. The fund has closed its first deal in France.

This fund sees a move up the credit spectrum from GREDIF – with GREDIF II not investing in junior and mezz debt. Loan to value (LTV) rates for GREDIF II will be up to 60%.

The fund will focus on investments with strong ESG credentials. The investment process includes an assessment of the loan based on an ESG scorecard – assessing both the sponsor and asset.