The list of European winners in PropertyEU's 2014 edition of Top 100 Investors features a strong contingent from the the UK, France & German-speaking countries. Here are three profiles of the biggest winners among the investment managers: Aberdeen Asset Management, BNP Paribas Real Estate and Swiss Life REIM.
The list of European winners in PropertyEU's 2014 edition of Top 100 Investors features a strong contingent from the the UK, France & German-speaking countries. Here are three profiles of the biggest winners among the investment managers: Aberdeen Asset Management, BNP Paribas Real Estate and Swiss Life REIM.
ABERDEEN ASSET MANAGEMENT
By how much has the company grown in the past 3 years?
Aberdeen Asset Management had real estate assets under management of €23 bn in 2011. At end-2013, the pro forma estimate including SWIP came to €30 bn.
How has the company grown and where?
The company acquired Scottish Widows Investment Partnership (SWIP) for £550 mln (€687 mln) from state-backed Lloyds Investment Group in November 2013. The takeover added £132 bn of assets and turned Aberdeen into the largest listed investment firm in Europe. The expanded property business led by global head Pertti Vanhanen now aims to boost the real estate portfolio, which currently accounts for 7% of total investment, to 12%.
[/]Which sectors and countries is it targeting?
Following the merger, Aberdeen will continue to focus on core assets. ‘There has been a rush to value-added assets for many investors but, so far, we don’t really see the need to do that,’ Vanhanen told PropertyEU. ‘Our basic platform remains Aberdeen and, in addition, we have incorporated good ideas from SWIP. We still have a risk-averse approach to investment – that’s in our DNA.’ Retail assets are high up on Vanhanen’s wish list, particularly supermarket-anchored shopping centres, but Aberdeen is also targeting offices in second-tier cities across Europe, as well as prime logistics, due to their good returns. ‘Ultimately, the geographical allocation is less important than the deal itself. We don’t exclude many markets – other than Southern Europe right now.’ Aberdeen’s European Balance fund also avoids southern Europe, investing in markets such as Germany, France, the Netherlands and Finland. Aberdeen would like to invest more in the Nordic region as well as Germany, France and the Netherlands. The company already has dedicated residential funds in Germany and Sweden and Vanhanen is open to launching similar funds in other European markets if he can find the right opportunities.
BNP PARIBAS REAL ESTATE
By how much has the company grown in the past 3 years?
BNP Paribas Real Estate has seen its assets under management grow almost 50% since 2011 to €18.5 bn at end-June 2014.
How has the company grown and where?
The real estate arm of French bank BNP Paribas has traditionally had a stronghold in its home market in virtually all sectors. The acquisition of iii-investments at end-2013 ties in with the company’s plan to grow its business in Germany, the UK and France which, combined, account for more than 80% of European real estate investment. For BNP Paribas, the acquisition of iii-investments made perfect sense as it gives them access to new clients – German institutional investors. iii-investments was previously a subsidiary of HypoVereinsbank in the UniCredit Group. The bulk of its assets are offices located in Germany, although there are also some properties in France, the UK and Japan.
Which sectors and countries is it targeting?
Shortly after the acquisition of iii, BNP Paribas REIM made its first foray into the German debt fund space. ‘The debt funds were one of the reasons we were interested in iii,’ Henri Faure, deputy chief executive of BNP Paribas Real Estate, told PropertyEU. The investment manager is also expanding its pan-European business. Earlier this year it launched a new €800 mln pan-European fund: Next Estate Income Fund II. Like its predecessor NEIF I, the fund aims to form a diversified pan-European portfolio of modern office properties targeting European institutional investors. The priority target markets are the five largest German cities and the Paris region. BNP Paribas REIM is also active in healthcare, via its OPCI Healthcare Property Fund I. And earlier this year it expanded its presence in the residential market outside its traditional base through the acquisition of 265 Dutch apartments for around €40 mln via its German subsidiary. BNP Paribas REIM anticipates further deals in this segment in the Netherlands.
By how much has the company grown in the past 3 years?
SWISS LIFE REIM
By how much has the company grown in the past years?
Swiss Life doubled its real estate assets under management in August 2014 through the €210 mln acquisition of Corpus Sireo from its three owners: German savings banks Sparkasse KölnBonn (50%), Stadtsparkasse Düsseldorf (25%) and Frankfurter Sparkasse (25%). Following the takeover, Swiss Life will have a platform with €36 bn of real estate assets.
How has the company grown and where?
Swiss Life was already one of the largest pensions and insurance providers in Switzerland, Germany and France. The group has been active in real estate for some 120 years and has some 70,000 residential properties in its home market valued at CHF 18.5 bn (€15.3 bn) at end-2013, making it one of the largest real estate owners in Switzerland. Following the takeover of Cologne-based Corpus Sireo, which has 550 staff managing €16.5 bn of assets across 11 offices in Germany and one in Luxembourg, Swiss Life will have a platform with a team of over 1,000 people. Swiss Life has been working to create a broader European platform for some time. The first step was the takeover of French asset manager Viveris in 2011. Viveris had €4.5 bn of property assets under management at end-2013 and was rebranded as Swiss Life REIM (France) in May 2014. This unit is headed by Frédéric Bol.
Which sectors and countries is it targeting?
With Corpus Sireo, Swiss Life can claim to be a leading provider in real estate asset management in Switzerland, France and Germany. Swiss Life REIM (Switzerland) is responsible for the entire management of the directly (Swiss Life AG) and indirectly (Swissville) held real estate portfolio in Switzerland as well as the asset management for third-party real estate vehicles (Investment Foundation, Real Estate Funds. Through its subsidiary Livit, Swiss Life REIM has a team of 450 employees who manage both the Swiss portfolio and oversee the management of the group-wide holdings. The company is active in offices, retail, residential and nursing homes.