Invesco aims to tap German institutional investors

Invesco Real Estate sees 'huge opportunities' for its special funds in Germany, Simon Redman, head of product development and senior director, said in an interview with PropertyEU. 'More institutional investors are interested in real estate and are becoming more international. This is a huge growth area.'

German pension funds currently invest around 6% to 10% in real estate, Ute Gelpel-Faber, senior director clients relations for Invesco's German division, pointed out. 'Three years ago, it was only 5%. There is still plenty of scope for further growth.'

Redman said Invesco was planning to create special funds targeting German investors, but said they would not be structured as open-ended funds. 'We don't have any at Invesco. Historically they have been a good tool for German investors, but they have an intrinsic structural problem given the possibility of money-market funds moving a lot of money very quickly in and out,' he said. Invesco is seeking to develop a new pan-European fund and niche or strategic products, Redman continued. 'We already have a hotel fund which offers a 7.5% dividend. We are looking at setting up a second fund.'

Invesco is currently also seeking to expand its fund management activities through acquisitions and has looked closely at two or three potential candidates, Redman said. 'They haven't fallen off our list yet. We are in expansion mode.' He added, however, that he expected to see more takeover opportunities next year. 'If we do, we'll be in a position to swoop. We have no debt legacy.'