Insurers Munich Re and Mapfre have provided seed assets for a newly launched European core office property fund.
MEAG, the asset manager of Munich Re Group, said it has launched the fund to focus on office properties in prime locations in Europe’s top venues.
MEAG said the fund volume is expected to reach around €500m by 2023, adding that it expects to open the fund for investments by other institutional investors from Germany and Europe in 2014 in order to grow the fund to €1bn by 2025.
Munich Re and Mapfre are contributing to the initial asset portfolio with existing core properties they are holding in Germany and Spain respectively.
Nicholas Gartside, CIO and member of the board of management of Munich Re, said: “I am delighted that with this collaboration, we are able to extend and deepen our relationship with our insurance partner of many years standing, Mapfre, to now also encompass asset management.
“It is strategically important for Munich Re to enrich our interlocked business model with asset management activities, and to offer value-adding services to our clients.”
Fernando Mata, Mapfre CFO and a member of the board: “In recent years we have diversified our portfolio with alternative funds as a result of the very low rate environment.
“And we have always done so with the best partners. That is why we are proud to embark on this new alliance with Munich Re, a partner we have been working with for so many years, now in the real estate sector.”
Frank Becker, MEAG managing director responsible for institutional clients, said: “High-quality, well-diversified office property investments continue to be an important building block in institutional portfolios. During the pandemic, attractive office properties in central locations have proven again to be a potential source of steady income.
“Therefore, we are happy to add to our range of investment solutions with a new property fund supporting our clients’ needs.”
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