German open-ended real estate funds (GOEFs) took advantage of favourable conditions in 2010 to increase their trading activities, particularly in cross-border transactions. In all, the funds bought and sold 173 assets for a total of EUR 10.9 bn, according to a new report published by the German fund association BVI.
German open-ended real estate funds (GOEFs) took advantage of favourable conditions in 2010 to increase their trading activities, particularly in cross-border transactions. In all, the funds bought and sold 173 assets for a total of EUR 10.9 bn, according to a new report published by the German fund association BVI.
Germany remains the largest investment market for GOEFs, accounting for 29% of their total portfolio of 1,650 assets valued at EUR 94 bn at end-December 2010. France is the second largest market, making up 18% of total holdings, followed by the UK (9.1%) and the Netherlands (6.6%).
But in a study that compares GOEF activity over the last five years, BVI said the portion of assets acquired by the funds outside Germany rose significantly in 2010 in comparison to the year before.
Total acquisition volume came to EUR 7.1 bn, up from EUR 5 bn in 2009. Foreign acquisitions accounted for EUR 5 bn, or 70% of the total, in 2010, up EUR 1.5 bn on the previous year's total of 3.5 bn. German acquisitions totalled EUR 2 bn in 2010 compared to EUR 1.5 bn a year earlier.
BVI recorded 81 sales transactions in 2010, nine less than a year before. Sales of domestic assets dropped by 34 to 30 compared to 2009, while the number of sales of foreign assets climbed from 27 in 2009 to 52 in 2010. The total sales volume last year came to EUR 3.9 bn, with foreign sales accounting for the bulk (EUR 3 bn). In 2009 German sales outstripped foreign disposals: EUR 1.4 bn compared to EUR 1 bn.
