German fund manager Union Investment said on Tuesday it is setting up two special funds for health insurer SDK Group which will bundle the company's indirect property investments. The funds have a combined target volume of EUR 250 mln and are aimed at consolidating SDK’s existing indirect property investments and further diversifying the portfolio over the next few years.
German fund manager Union Investment said on Tuesday it is setting up two special funds for health insurer SDK Group which will bundle the company's indirect property investments. The funds have a combined target volume of EUR 250 mln and are aimed at consolidating SDK’s existing indirect property investments and further diversifying the portfolio over the next few years.
The SDK-Immoselect and SDL-Immoselect funds will invest in other real estate funds and open-ended vehicles. The aim is to build a diversified European portfolio with a strong focus on sectors such as retail, healthcare and industrial. However, exposure to alternative assets such as timber will also be considered, Union said.
As part of the mandate, Union Investment will provide fund administration services to the SDK Group (Süddeutsche Kranken- und Lebensversicherung aG)
and assist with strategic focus and selecting new target funds.
Union said the funds form part of its strategy to expand its product range for institutional investors by creating special investment vehicles (Sondervermögen). The fund manager's institutional business currently comprises an institutional retail fund and five special funds with a total volume of some EUR 3.2 bn.
‘Union Investment came out top against other asset managers following a rigorous due diligence process. We’re confident that Union Investment is the right real estate partner for us, on both an administrative and strategic level, enabling us to manage our real estate investments successfully going forward,’ said Jan von Graffen, head of asset management at SDK Kranken Leben Allgemeine.
