CGG, Commerzleasing form real estate asset manager giant

Germany's Commerzbank Group has merged its real estate units Commerz Grundbesitz Gruppe (CGG) and Commerzleasing und Immobilien to create one of the largest real estate managers and leasing providers in the world. The new company, Commerz Real, has about EUR 42 bn of assets under management, propelling it into third place on the list of the top 5 real estate asset managers.

Commerz Real passes over Deutsche Bank/RREEF (EUR 28 bn), TIAA/CREF Real Estate (EUR 32), and Prudential Real Estate (EUR 37 bn), third, fourth and fifth respectively in the rankings of real estate asset managers published in the May edition of PropertyEU Magazine. The two largest real estate asset managers are Morgan Stanley and ING Real Estate, EUR 48 bn and EUR 72.4 bn respectively at end-June.

Commerzleasing was formed 36 years ago and its services include structured investments, real estate ventures, CFB Funds and equipment leasing. CGG was founded as a holding company in 2001 and its CGI unit manages the open-end property funds Hausinvest Europa and Hausinvest Global. Another part, CGS, has launched and managed six institutional funds. In March 2006, CGG became the first German real estate company to launch a real estate investment trust (REIT) with the creation of Cegereal in France.

'Commerz Real pools the competence and revenue power of two successful companies with a comprehensive range of investment and financing options, said Hubert Spechtenhauser, management spokesman of Commerz Real. 'This makes us a powerful partner for individual investors, corporate and public-sector clients as well as institutional investors, both domestic and foreign.'