Illimity Real Estate Credit Fund (iREC): 5 new closing up to 380 Bn AUM

The Illimity Real Estate Credit Fund (iREC), managed by illimity SGR, has seen a significant increase in its funding over a period of 18 months, reaching a total of €380 million. This includes a notable addition of €92 million through five new loan agreements in the last quarter of 2023. The fund, which caters to institutional investors, specializes in distressed credits, particularly focusing on Unlikely-to-Pay (UTP) balances that are secured by real estate assets. This strategy involves a mix of mortgage loans and lease agreements.

iREC’s growth reflects its strategic focus on a niche sector within the real estate market. The fund’s approach, under the guidance of illimity SGR, involves a comprehensive understanding of the complexities involved in distressed credit markets. This knowledge has been critical in navigating the challenges and opportunities in this sector.

The recent increase in funding could be indicative of growing investor confidence in iREC’s management and strategy. This development also suggests a potential for further expansion and diversification of the fund’s portfolio, in line with market trends and opportunities.As the fund continues to evolve, it remains to be seen how it will leverage its current position in the competitive field of real estate credit and distressed credit markets. The fund’s future moves and strategies will likely be closely watched by investors and market analysts alike.

Paola Tondelli, Head of UTP & Turnaround Funds in illimity SGR, commented: “iREC confirms its pledge to provide top-quality solutions for managing distressed real-estate credit by means of a clear strategy, a dedicated team and a constant commitment to our unit-holders designed to identify investment opportunities and maximise their value. Thanks to the professional qualities of a working group having in-depth knowledge and expertise in both distressed credit management and the real estate sector – as well as the specialist support of ARECneprix – the Fund is able to cover the whole value chain as part of the management of distressed loans secured by real estate assets. We will continue our growth path in synergy with the illimity Group as a whole, in order to achieve new and important goals.”

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Massimo Famularo

Blogger and Investment Management Advisor with focus on Distressed Assets & NPL. Massimo is Chief NPL & Fintech Editor at Credit Village Magazine.

Credit Village is a leading company in the field of specialized publishing and event organization for the credit management industry and in all issues and aspects related to the NPE market, including ESG , M&A, Real Estate etc. Credit Village has been the first company in Italy to bring the culture of the credit management industry to the press, events and online, creating the largest community in the sector around itself.