Universal Investment, the Frankfurt-based investment manager, is forecasting substantial growth of its property portfolio in the next decade of up to EUR 14 bn. 'We are targeting a portfolio which would come to about 5-10% of our existing assets under management,' managing director Alexander Tannenbaum told PropertyEU.
Universal Investment, the Frankfurt-based investment manager, is forecasting substantial growth of its property portfolio in the next decade of up to EUR 14 bn. 'We are targeting a portfolio which would come to about 5-10% of our existing assets under management,' managing director Alexander Tannenbaum told PropertyEU.
The investment manager is starting virtually from scratch after setting up the real estate business unit in 2011. Tannenbaum conceded that the target is ambitious, but said that the potential for growth in Germany was enormous. Potential investors include pension funds, insurers, corporates and foundations.
Universal Investment's equities, bond and alternatives portfolio is one of the biggest in Germany with assets under management of EUR 143 bn. Founded in the early 1970s by some of Germany’s biggest private banks, the company claims to be the largest independent investment manager in the country.
The company sees significant potential for investment vehicles structured as special funds (Spezialfonds) in Germany or Luxembourg for institutional investors. It is currently in talks with investors to create a suite of retail funds with equity of around EUR 300-400 mln focussing on core and value-added properties in inner-city centres as well as out-of-town locations in Germany. It is not ruling out funds with an international mandate in due course.
One of the funds it has launched is an Asian vehicle asset managed by MGPA. The first close of the MGPA Asien Spezialfonds was announced in early September with commitments of EUR 85 mln from three German institutional investors.
MGPA Asien Spezialfonds is a yield focused core-plus product regulated by the German Investment Act. It is intended primarily for institutional investors in German-speaking countries seeking exposure to Asia-Pacific real estate markets, with an investment focus on established markets such as Japan, Australia, Hong Kong, Singapore and Malaysia. MGPA has operated in Asia since 1999 and maintains a substantial real estate organisation in the region, with seven offices and over 150 employees.
