GERMANY - IVG Immobilien, Germany's largest provider of institutional open-ended real estate funds, is to dissolve three of its Spezialfonds, which together hold approximately €2bn in real estate assets.
Two of the vehicles contain a number of investors who no longer want to invest in large groups or with a broad geographical and sectoral investment strategy.
IVG is planning to offer more specialised products for smaller groups of investors with more targeted strategies.
IVG spokesman Jens Friedemann said many of these investors wanted to focus on market segments they expect to outperform over the next two to three years, but others were looking to exit from the funds for liquidity reasons.
"At least two of the investors need money in order to keep their obligations," he said.
The funds are invested globally with the majority of assets in Europe and a small fraction in the German property market.
The third IVG fund is wholly owned by one German pension fund for more than 10 years, and according to Friedemann has decided to bring the vehicle to a close for separate reasons.
IVG Immobilien has also announced that Mann Immobilien-Verwaltung is to become a major new shareholder in the company, having acquired 18.4% of IVG's outstanding shares from Solidas 3, the former partners of bank Sal. Oppenheim.