Degi invests EUR 1.7bn in 2008, targets new acquisition this year

Degi, part of Aberdeen Property Investors, invested a total of EUR 1.7 bn last year on behalf of its public property funds. In a statement on Tuesday, the property asset manager said that new acquisitions are also planned for this year in anticipation of further inflows.

'We are in a good position to take advantage of new investment opportunities in the current markets, which are beginning to offer attractive values', announced CEO Bärbel Schomberg.

Schomberg added that since the end of 2007 Degi has taken advantage of price corrections in several property markets offering the potential for significantly more attractive returns, The group of possible target countries is being widened gradually to include the UK, France and Germany.

The company has substantially expanded its letting base over 2008 as a result of intensive letting activities and new investments. On 28 February 2009, the funds' rented space totalled approximately 1.62 million m2, up from 1.16 m² a year before. In 2008, around 100,000 m² of space was let and re-let, it said. As a result, the one-year performance of Degi's funds is holding up well. With returns of between 4.4% and 5.3%, Degi's funds have performed substantially better than other investment fund categories and fixed-interest-rate securities, Degi pointed out.

In light of continuing market volatility, severe fluctuations on weak stock markets and with bonds yields at an historic low, Degi's management anticipates a high level of interest amongst investors in security-oriented forms of investment and therefore good sales opportunities for public property funds. This is particularly applicable to Degi's funds, which pursue a relatively low-risk investment policy (its core investment strategy) that targets fully let portfolio properties, new acquisitions in prime locations and high-quality properties with low levels of debt.

'In times of uncertainty, reliable forms of investment tend to do particularly well. People are looking for consistent returns with transparent, comprehensible forms of investment. This is precisely what our funds offer,' Schomberg said.