Deka reports €2.8b of property deals in 2013

Deka Immobilien carried out 45 real estate acquisitions and disposals totalling €2.8 bn in 2013.

The Frankfurt-based fund manager for German savings banks reported that its three open-ended real estate funds for private investors and its institutional vehicles bought a total of 22 properties for €2.2 bn in Europe.

By far the largest transaction by volume was the acquisition of St Botolph office building in London for around €500 mln in November 2013. In addition to its focus on capital cities like London, Paris and Amsterdam, Deka Immobilien made counter-cyclical investments in the southern European markets of Lisbon, Madrid and Barcelona.

During the year Deka also carried out 23 disposals totalling €600 mln in Germany, France, the Netherlands, Luxembourg, Italy, Japan and the US. The volume for European disposals came to €260 mln.

The three open-ended real estate funds for private investors - Deka -Immobilien Europe, Deka -Immobilien Global and West InterSelect - recorded net inflows of around €1.15 bn. Deka said demand was such that it almost surpassed the inflow quotas set with its savings banks clients. The inflow limits were not increased as Deka Immobilien adhered to the principle of only collecting as much equity as the company believed it could 'invest wisely'. Deka's institutional investment products received net inflows of €370 mln.

Deka’s assets under management increased by around one €1 bn in 2013 to €24.9 bn, with the open-ended funds accounting for 80% of the total.

Turning to 2014 Deka plans €2.3 bn of real estate acquisitions and €700 mln of disposals. Supervisory board chairman Matthias Danne indicated this would be possible as there was continued demand for its real estate products despite changes to the regulatory framework. This year Deka intends to expand its activities in non-European markets such as New York and Tokyo.