Paramount Group is closing a real estate debt fund that has $775 million in commitments.
The fund, named Paramount Group Real Estate Fund VIII, is the New York-based real estate investment trust's second and largest debt fund. The fund focuses on mezzanine and preferred equity investments in office properties in New York, Washington, and San Francisco.
Paramount said in a news release Monday that it had already deployed $165 million of the fund toward three investments. The commitments to the fund primarily came from German institutional investors.
"We appreciate the enthusiasm and strong support shown for Fund VIII from new and key existing investors," Paramount director of European capital markets Christian Fischer said in the release. "The combination of Paramount's market knowledge and finance expertise together with Fund VIII's investment objectives were convincing reasons for investors."
