Castlelake Provides Financing Solution to Net Zero Properties for German Residential Assets

MINNEAPOLIS, May 20, 2025 /PRNewswire/ -- Castlelake, L.P. ("Castlelake"), a global alternative investment manager specializing in asset-based private credit, today announced it has provided a financing solution to NetZero Properties ("NetZero"), totaling more than €850 million inclusive of senior bank financing from LBBW. NetZero Properties is a portfolio company of ZAGA Capital Partners and managed by asset manager ZAR Real Estate. The financing will be used by NetZero to fund the acquisition of multifamily residential properties primarily across north and west Germany.

The properties will be held by NetZero Properties ("NetZero"), a portfolio company of ZAGA Capital Partners, which owns over 14,000 rental units. The capital commitment will also support the ongoing modernization of the rental units.

"We are pleased to support ZAGA Capital Partners and NetZero with this tailored financing solution as they grow their portfolio of residential assets across Germany where consumer demand remains high," said Eduardo D'Alessandro, Partner at Castlelake. "We believe this transaction offers Castlelake's investors with compelling private credit exposure to cash-flowing assets in a prime European market with strong fundamentals."

"We believe Castlelake's support of NetZero speaks to the high quality and strategic nature of NetZero's portfolio, our institutional investment and asset management and ESG approach," said Antonio Galea, Founding Partner of ZAGA Capital Partners. "The financing solution will enable us to continue to grow our multifamily portfolio and improve existing residential assets, thereby contributing to the supply of quality homes in Germany and advancing our goal to improve properties and tenants' quality of life." 

Castlelake has been active in asset-based opportunities across Europe since 2006, having both acquired assets and provided asset-based private credit solutions. The firm has invested more than €7 billion and acquired or financed more than 8,000 assets across 18 European countries since that time. Castlelake's recent asset-based private credit transactions in Europe include a €125 million of asset-based financing to lease originator GoByBike, a strategic partnership to provide €1 billion of Nordic real estate financing and a mortgage-secured loan to a UK hospitality portfolio.

About Castlelake

Castlelake, L.P. is a global alternative investment manager specializing in asset-based private credit. Founded in 2005, Castlelake manages approximately $25 billion of assets on behalf of a diversified global investor base and is a strategic partner of Brookfield Asset Management Ltd., a leading global alternative investment manager with over $1 trillion of assets under management. The Castlelake team comprises more than 220 experienced professionals, including 80 investment professionals, across seven offices in North America, Europe and Asia. For more information, please visit www.castlelake.com.

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