Commerz Real to merge hausInvest funds into EUR 12.5b giant

Commerz Real is to merge its two open-ended real estate funds, hausInvest europa and hausInvest global, later this year. The merger scheduled for September will create the largest open-ended real estate fund in Europe, with a volume of about EUR 12 bn. The investment focus for the merged hausInvest fund will be on Europe, with a global component mixed in.

Based on current figures the merged fund will own a portfolio of 125 high-end properties in 19 countries. The real estate is 87% located in what Commerz Real describes as the 'stable markets' of Europe and the rest is located in 'economically thriving' regions of Asia and North America.

The German real estate asset manager said the background to the decision included market and portfolio strategy considerations that take the shifted economic parametres and the changing needs of investors into account. Merging the hausInvest vehicles, according to Commerz Real, would put them on a far broader basis to cushion the developments in individual markets.

'The merger of the two hausInvest funds will make the best of two worlds available to our investors,' said Erich Seeger, Commerz Real board member in charge of fund sales. ' We will combine the stability of a comprehensively diversified real estate portfolio marked by a European focus with an expanded opportunity potential that arises from the addition of a global component. This will give all ‘hausInvest’ investors a chance to benefit from global growth perspectives without abandoning the European stability aspect.'

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