REAL ESTATE - Bonn-based IVG Immobilien is to target pension funds with bespoke vehicles invested in non-listed real estate – in addition to its growing portfolio of closed-end core, opportunistic and development funds.
The firm has already launched two institutional funds invested in non-listed property – one a development fund focused on Paris, the other on Greater London – with more in the pipeline. The volume of IVG’s institutional funds increased to €9.7bn in 2005 from €8.8bn in 2004.
Now it says it will boost its fund portfolio with “individual products” for pension funds in the UK, the Netherlands, Norway and Belgium. “These are our clients of the future,” IVG spokesman Thomas Rücker said.
He added: “We’re doing exactly what Morley Fund Management has done. The difference is that we have expertise and a track record in real estate.”
The news came as the firm released 2005 figures showing 47% year-on-year growth in profits and announced that it had already almost reached its whole-year target for 2006 by the end of March.
Rucker attributed the 2005 results to “good luck” with the sales of developed buildings, an increase in the value of some buildings, and the acquisition from the government of oil and gas storage caverns in Etzel, northern Germany. “We call [the caverns] buildings without windows but this isn’t something we’ll be doing more of. The geological factors are specific to Germany,” Rücker said.
One-off, opportunistic deals accounted for yet more of last year’s growth. After acquiring a portfolio that included retail property in Helsinki, IVG, which exclusively invests in office, divested it to Rodamco Europe in a deal that included an asset swap and cash.