Meag, the asset manager of Germany's Munich Re Group and Ergo, has attracted Spanish insurance firm, Mapfre, for a core European office fund aiming to invest up to €500 mln by 2023.
Mapfre is the seed investor along with Meag, both of whom are contributing assets in the first place, but the fund will be opened to different institutional investors from Germany and Europe in 2024, leading the partners to think it could grow to €1 bn by 2025.
This is far from the first time Spain’s Mapfre has teamed up with a European institution for a property strategy. As recently as April 2021, it launched a €400 mln co-investment vehicle with Swiss Life for assets in Spain and Italy following a 2019 agreement when they combined to invest almost €300 mln in nine prime properties in Paris.
It is also not the first time Meag and Mapfre have worked together having partnered on investments for several years.
Mapre and Meag’s strategy for the new office fund is to assemble a portfolio of high-quality assets in prime locations in top European locations. To begin the fund, both organisations are contributing properties in Spain and Germany.
Fernando Mata, Mapfre CFO and a member of the board, said: ‘In recent years we have diversified our portfolio with alternative funds as a result of the very low rate environment. And we have always done so with the best partners.
Frank Becker, Meag MD responsible for institutional clients, added, ‘Over the last years, we have successfully grown our footprint in the institutional investor segment.’
‘This is the case for traditional asset classes as well as real assets. High-quality, well-diversified office property investments continue to be an important building block in institutional portfolios. During the pandemic, attractive office properties in central locations have proven again to be a potential source of steady income. Therefore, we are happy to add to our range of investment solutions with a new property fund supporting our clients’ needs.’
