Whole Loans – Dynamic Real Estate Debt Opportunities
Since 1590, Berenberg has stood for reliability, entrepreneurial thinking, and tailored financing solutions. Institutional investors benefit from our experienced team of over 20 real estate and financing experts. We combine the stability of a BaFin-regulated credit institution with the agility of an asset manager to identify investment opportunities. Our goal: Operational excellence.
Our Real Estate Debt strategy focuses on first-lien secured Whole Loans with an investment focus on Germany, supplemented by Austria and Switzerland. Through our established selection and risk management approach, we minimize dependence on market cycles. We concentrate on cash-flow-oriented project financing for various property types and life cycle stages. Financing for landbanking and for projects still in the early planning stage are excluded.
Berenberg specifically identifies financing gaps and is distinguished by its high level of structuring expertise and its transaction speed. By applying our deep expertise in real estate and finance, we deliver attractive, risk-adjusted returns. The success of this approach is evidenced by our proven track record, with zero losses recorded across all our Private Debt strategies since 2016.
As real estate debt specialists, we finance intrinsic value instead of speculation. Our Berenberg Whole Loan Plus-Strategy stands for strong collateral, a deep understanding of assets and sustainable cash flows – for stable performance and real downside protection.
Lars Hagemann, Head of Structured Finance
Your Contacts
Opportunities for Alternative Financing Solutions
Structural Shifts in the
Financing Market
The German and European real estate financing market is undergoing a profound structural adjustment process. Following the shift in interest rate policy and the subsequent reassessment of real estate prices, the market environment has fundamentally changed. Although capital markets have been gradually stabilizing since 2024 and transaction activities are selectively picking up again, lending by traditional banks remains significantly more restrictive than in previous years.
Regulatory framework (Basel III/IV), higher capital requirements, stricter risk assessments, and an increased focus on existing clients are leading to a noticeable supply shortage, particularly in the commercial real estate segment. At the same time, a significant volume of financing arrangements concluded during low-interest phases will mature in the coming years. The combination of refinancing needs, more conservative loan-to-value ratios, and changed valuation criteria is leading to a structural financing gap in the market.
An Attractive Market Window for Investors
In this particular environment, alternative capital providers are becoming increasingly important. They are able to react flexibly to complex situations—such as refinancings, repositionings, bridge financings, or structured Whole Loan solutions. This opens up an attractive market window for institutional investors: solidly secured financing with a structural excess of demand, conservative loan-to-value ratios, and strengthened bargaining power on the lender's side.
The real estate financing market is therefore not just in a cyclical phase, but in a sustainable structural transformation. Alternative financing models are a central component for providing capital efficiently while simultaneously achieving attractive risk-adjusted returns.
Our Answer: The Berenberg Whole Loan Plus-Strategy
Against this backdrop, the Berenberg Whole Loan Plus-Strategy operates as an active financing partner within the German market. It adopts a cash flow-focused investment approach, financing properties whose sustainable debt capacity significantly exceeds the committed loan amount. This creates a substantial protective cushion for investors, even as the challenging market environment persists.
Ideal Timing for Investors
Complex Financings in the Current Market Environment
More than an investment strategy: Our expanded structuring expertise.
In addition to the active implementation of our Whole Loan Plus strategy, we act as a comprehensive partner to our investors. We recognise that the shifting interest rate landscape and market volatility of recent years have created financing scenarios where initial assumptions – regarding interest rates, exit timing, or valuation trajectories – have been overtaken by current market realities. Such circumstances demand exceptionally close management and a high level of structuring expertise.
It is precisely for these situations that we maintain dedicated resources and the requisite expertise. Our team is fully prepared to focus on existing exposures that require in-depth analysis and active management beyond the standard scope. Through this complementary capability, we ensure that we can support our partners as a reliable, solutions-driven advisor, both during unexpected developments and throughout complex restructurings.
In addition to the opportunity for capital appreciation and distributions, an investment in the real estate sector also involves risks. These include, for example, the following risks (a selection):
- Vacancy and leasing risks
- Risks from increased costs for maintenance, repair, and revitalization
- Risks related to the construction and completion of properties
- Risks from rising operating and administrative costs
- Risks of value impairment due to a downturn in the real estate market
- Risks from debt financing and refinancing
- Risks related to the redemption of units and the suspension of redemptions
- Fluctuations in unit values
- Risks associated with the investment of liquid assets
- Legal, political, and tax law amendment risks
- Risks from the default of contractual partners (Counterparty risk)