Bavarian pension fund BVK, Germany’s largest institutional investor, and Universal Investment are setting up two Luxembourg-based fund vehicles with a total targeted investment volume of €3.6 bn.
The two umbrella funds will be fed by seven unnamed asset managers focusing on two separate strategies, Alexander Tannenbaum, managing director at Universal Tannenbaum, told PropertyEU at Expo Real.
The smaller of the two funds, with a target investment volume of €1.7 bn including leverage, will focus on European residential, Tannenbaum explained. ‘The fund will also invest, both directly and indirectly, in student housing and micro-living in the Nordics, the Netherlands and German-speaking countries.’
The second fund, with a target volume of €1.9 bn, will focus on assets in Asia and Australia. Universal Investment is one of the fastest-growing investment companies in Germany and Luxembourg and over the past 10 years has seen its assets under administration quadruple to €280 bn. The company is a market leader in the areas of master funds (Master-KVG) and private label funds and according to German investment industry association BVI, recorded one the highest net inflows in its sector with around €15 bn during the first half of 2016.
