German bank HSH's real estate unit is teaming up with German property company TAG to form an asset management company focusing on German commercial property. The two groups, which signed the JV agreement on Monday, said that they will each hold a 50% stake in the new company, which will be headquartered in Hamburg.
German bank HSH's real estate unit is teaming up with German property company TAG to form an asset management company focusing on German commercial property. The two groups, which signed the JV agreement on Monday, said that they will each hold a 50% stake in the new company, which will be headquartered in Hamburg.
The joint venture firm will manage an initial portfolio worth some EUR 1.2 bn. The assets will consist of TAG's and HSH Real Estate's own commercial properties managed on behalf of third parties.
'By pooling our know-how and expanding our market coverage, we are continuing on our growth course in asset management,' said HSH RE board member Marc Weinstock. 'Through this joint venture we are taking advantage of the opportunities offered by the changing market conditions,' he added.
The company will initially employ 32 people and be headed by Dietmar Busse and Kirsten Schleicher, currently managing directors of TAG Asset Management, as well as Stephan Jung, managing director of asset management at HSH RE.
HSH's asset management unit currently has EUR 2 bn in assets under management, of which 90% is commercial real estate in Germany's metropolitan regions. The company also owns a portfolio in the US and Central Europe. The international assets are generally managed by third-party managers on site, while in Hungary, HSH has set up its own asset management arm in Budapest.
TAG develops and manages a portfolio of more than EUR 1 bn.