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Private Real Estate Debt · Restructure-to-Core

Secured entry into failed capital structures.

EcoTrust Debt Capital SCSp invests in real estate credit and capital-structure positions where financing pressure separates the price of a claim from the defensible value of its underlying collateral. The focus: acquiring or refinancing secured credit positions, reordering unsustainable capital structures and returning them to a refinanceable, saleable or institutionally re-bankable position.

Secured entry basis. Controllable downside. Selective upside.

The Market Window

The adjustment pressure sits on the capital side.

The German real estate market continues to absorb the consequences of a changed interest-rate, valuation and financing environment. Maturing loans meet lower loan-to-value ratios, higher debt-service requirements and more cautious lenders. At the same time, banks, pension institutions and other regulated lenders must reduce real estate exposure for balance-sheet, risk or capital reasons.

This pressure does not affect only weak or unmarketable properties. It also reaches fundamentally sound assets whose existing financing structure can no longer be extended or fully refinanced under changed conditions. Three factors converge:

Regulated selling pressure

Lenders reduce exposure because capital tie-up, provisioning, concentration limits or regulatory requirements make continuation economically unattractive.

Refinancing need

Borrowers require refinancing, completion, transition or additional junior capital to reach an economically sensible exit.

Sound collateral

Despite the failed financing, the underlying property can retain resilient substance, marketable use and realisable repayment options.

Where these factors converge, an investable dislocation can arise: the price of the financing falls further than the defensible value of the collateral.

Investment Thesis

The value lies in the difference between entry basis and collateral.

EcoTrust does not invest in general market growth. The Fund invests in a concretely identifiable difference between five measurable quantities.

Where an existing credit position can be acquired or refinanced at a substantial discount, the Fund's economic entry basis falls. The discount forms the first margin of safety — not merely an expected return. Sponsor equity, junior capital and further collateral create additional loss-absorption buffers beneath the Fund's capital.

The base return derives from contractually agreed interest, fees and repayment of loan principal. In selected financings, a capped participation in actually realised project success may be added.

Return does not begin with the coupon. It begins with the relationship between entry basis, seniority, collateral value and repayment.

The identifiable difference between

AThe outstanding balance of the existing loan

BThe achievable refinancing or purchase price

CThe conservatively assessed collateral value

DThe Fund's position in the capital stack

EThe realistically achievable repayment or recovery proceeds

Restructure-to-Core

When the liability side fails — not the asset.

Restructure-to-Core is the central competence and selection approach within the investment strategy. It addresses situations in which the existing capital structure no longer holds although the underlying property is functionally intact and marketable — caused by over-leverage from an earlier market phase, expiring fixed-rate periods or loan terms, lower lending values, missing sponsor equity, cost increases, covenant breaches, extension pressure, or insolvency and liquidity problems within the existing ownership or financing structure. The strategy deliberately separates the property from its financing.

Dimension

Classic distressed real estate

Restructure-to-Core

Locus of failure

Asset, use or substance

Capital and financing structure

Condition of the asset

Frequently in need of refurbishment or development

Fundamentally functional and marketable

Entry

Direct acquisition of the asset

Acquisition or refinancing of a secured credit position

Primary value lever

Physical or conceptual repositioning

Discount, seniority and reordering of the liability side

Type of risk

Open construction, letting or market risk

Legal-financial structuring and workout risk

Objective

Sale after repositioning

Return to a refinanceable or saleable position

The strategy does not entirely exclude asset-level measures. Additional liquidity or capex may be required where it directly protects the value, completion or lettability of the collateral. Such funds are deployed in a controlled, ring-fenced manner at asset or SPV level — preserving the Fund's own exposure, not propping up an economically unsustainable legacy debtor level.

Value-Creation Mechanics

Value is created in a traceable chain.

The total return of a Restructure-to-Core position does not rest on a blanket distressed discount. It arises from several distinct, verifiable value levers.

01Secured entry at a substantial discountAcquisition or refinancing of a credit position below its outstanding balance and — after conservative review — below the defensible collateral or recovery value. The discount must already reflect identified market, legal, time and enforcement risks at entry.

02Collateral and ranking reviewAssessment of land charges, ranking, share pledges, receivables assignments, account control, guarantees and intercreditor arrangements. High nominal security is worthless if it is not legally enforceable or economically realisable.

03Assuming the creditor positionEcoTrust enters the capital structure as a secured lender, obtaining contractually defined payment claims, information rights, covenants and, where applicable, intervention or consent rights.

04Reordering the liability sideSeniority, tenor, amortisation, debt service and collateral are structured so that the financing is realigned with cash flow, project progress and realistic repayment — including senior/junior structures, partial refinancings, whole loans, bridge capital or additional mezzanine.

05Controlled asset-level deploymentCompletion, letting or value-critical capex funds are provided only on the basis of an approved budget and defined drawdown conditions — controlled, documented and tied to measurable progress.

06Servicing and workoutCash flow, covenants, collateral, sponsor development and repayment progress are actively monitored. On deviation: additional collateral, partial repayments, cash-trap or cash-sweep mechanisms, tenor adjustments or further restructuring measures.

07Enforcement as the fallbackEnforcing collateral is not the intended standard scenario, but it must be legally prepared and economically robust. Consensual or private-treaty solutions are preferred where they promise a higher or faster recovery than protracted enforcement. A secured creditor position does not automatically mean an asset can be taken over without further capital — ranking, process costs, prior rights and third-party bidders remain real factors.

08Core exitThe objective is a return to a position that banks, institutional investors or regular property buyers can carry again. Possible exit routes: full loan repayment, bank or fund refinancing, sale of the claim, private-treaty sale of the property, forward sale, sale after completion or stabilisation, or orderly collateral enforcement.

Target Investments

What decides is the position in the capital structure.

EcoTrust assesses every investment by its actual risk position: seniority, collateral value, economic entry basis, control rights and repayment capacity. The specific instrument is chosen to fit the asset, the financing purpose and the risk assumed.

Acquisition and refinancing of existing loans

Secured single loans or loan portfolios that become available at an economically relevant discount due to balance-sheet, risk or extension pressure.

Senior-secured lending

Senior-secured financings with conservative leverage, resilient cash flow and a clearly defined repayment route.

Whole loan and bridge financing

Structured whole or transition financings for refinancing, completion, letting, stabilisation or sale — requiring a clearly defined purpose and a take-out that is traceable at signing.

Selective mezzanine positions

Junior financings only where sponsor equity, collateral value, control rights and risk-adequate remuneration carry the additional ranking risk.

Senior/junior and LTV-relief structures

The Fund can assume clearly defined loan tranches where the incumbent lender reduces exposure and EcoTrust obtains a secured, appropriately remunerated position.

Stage 2, Stage 3 and NPL-adjacent exposure

Considered only where the property is fundamentally sound, the legal position is robust and the recovery route is traceable. EcoTrust does not invest in claims whose nominal discount merely conceals insufficient collateral value.

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Downside Protection

Protection is created at entry and in the structure.

Downside protection is not produced retrospectively through reporting. It is anchored contractually and economically when a position is acquired or structured.

Senior LTVgenerally ≤ 65%

Combined senior + mezzanine LTV≤ 75%

Sponsor equitygenerally ≥ 25%

DSCR, base case≥ 1.30x

Stressed DSCR≥ 1.10x at +200 bps

ICR, development financings≥ 1.50x stabilised

Indicative guardrails, subject to the final fund and transaction documentation. Deviations require documented justification and explicit approval. A transaction that works only through rising property values or potential upside participation is not investable.

The principal layers of protection

DiscountThe purchase or refinancing price sits below the outstanding balance and must keep sufficient distance to the conservatively assessed recovery value.

Sponsor equitySponsor capital and junior positions absorb losses ahead of the Fund. Actual equity deployed and its economic subordination are verified and documented.

SeniorityThe Fund's position must be protected by effective collateral and clear ranking. Unclear land-register, intercreditor or enforcement positions are unacceptable.

Control rightsCovenants, information rights, drawdown conditions, cash-trap and cash-sweep mechanisms preserve early responsiveness.

Multiple repayment routesNo investment may depend on a single exit scenario. Refinancing, sale, loan sale and recovery are analysed in parallel.

Stress resilienceCash flow, property value, interest, costs, timeline and refinancing are stressed under realistic adverse assumptions.

Return Architecture

Secured base return. Selective, realised upside.

EcoTrust strictly separates the credit-based base return from any additional participation in project success.

Contractual base return

Current or capitalised loan interest, arrangement and structuring fees, exit or prepayment fees, and full repayment of loan principal. These returns must be economically viable on the credit structure alone, without upside participation.

Value realisation from entry basis

Where positions are acquired below par, additional return can arise from the difference between purchase price and realised repayment. This return is not guaranteed — the discount serves first to cover legal, market, time and enforcement risks.

Contingent exit participation

In selected whole-loan, bridge or mezzanine financings, EcoTrust may additionally participate in actually realised Net Project Upside — arising only after the Fund's loan and senior debt are repaid, approved and evidenced project costs are covered, actual sponsor equity is returned and a contractually defined sponsor hurdle is served.

Indicative participation range by risk profile

Defensive senior or whole-loan structure15%

Structured whole loan or bridge20%

Mezzanine or economically equity-adjacent riskup to 25%

Participation arises exclusively from actually realised proceeds — never from book-value increases or unrealised plan assumptions. The structure provides for clear caps on loan-level IRR and MOIC, audit and information rights, a tightly defined cost basis and anti-leakage provisions covering sponsor, development, asset-management and affiliate fees.

At fund level, kicker income received may be prioritised for investors until a defined target return is reached; only then does the regular carry distribution apply. The specific kicker and waterfall mechanics remain to be finalised with the fund documentation and aligned legally, regulatorily and for accounting purposes. They do not constitute a guaranteed additional return.

The strategy remains credit-based: a secured debt position with selective upside — not an equity investment in a credit wrapper.

Strategic Access

Insight. Access. Execution.

EcoTrust's strategic advantage does not lie in the availability of capital alone. Capital by itself identifies no mispricing, assesses no ranking and executes no restructuring. Value arises from the combination of expertise, market access and execution capability.

Insight

ALIS Capital Management combines credit strategy, capital structuring, real estate valuation, institutional capital allocation and workout and restructuring expertise — enabling simultaneous assessment of property, claim, seniority, collateral and recovery.

Access

Many attractive mid-market situations are never broadly marketed. Access arises through relationships with banks, workout and risk departments, borrowers, servicers, insolvency administrators, advisers and specialised market participants. Discretion, certainty of execution and the ability to convert complex information quickly into a robust credit decision are sourcing factors in their own right.

Execution

An opportunity becomes an investment only through completion: economic assessment of the collateral, negotiation of the refinancing price, structuring of ranking and control rights, provision of capital, legally robust documentation and active management through to repayment.

Investor Perspective

A credit position with layers of protection and additional return potential.

These are balanced by credit, market-value, refinancing, enforcement, liquidity, concentration, legal and operational risks. A loss, up to and including total loss of the capital invested, cannot be excluded. EcoTrust does not promise a risk-free return. The Fund pursues an approach in which risks are identified, priced, secured and actively managed over the entire holding period.

Entry below value. A secured creditor position. Controlled repayment.

For professional investors, the strategy combines

A secured entry into sound real estate positions

An economic buffer from discount, seniority and sponsor equity

Contractually defined interest and fee claims

Active control over covenants, collateral and repayment

Multiple potential exit routes

Selective participation in actually realised project success

Prioritised investor participation in additional income under the final fund structure

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This page is addressed exclusively to professional investors. It constitutes neither an offer nor investment advice. Indicative parameters are subject to the final fund and transaction documentation. An investment involves substantial risks, up to and including total loss. See Regulatory Disclosures.