Universal-Investment has been contracted to acquire more than €500 mln in real estate on behalf of institutional clients during 2015.
Universal-Investment has been contracted to acquire more than €500 mln in real estate on behalf of institutional clients during 2015.
The Frankfurt-based investment management giant said the transactions would be conducted through its Master-KVG/administration platform, 'reflecting the strong demand on the part of institutional investors such as pension funds or insurers for real estate as a reliable source of yield in a low-interest-rate environment'.
Since Universal-Investment, the largest Master-KVG in Germany, entered the real estate market in 2011, the company has launched 12 real estate special funds for institutional investment funds. Two more funds are currently in the inception phase. At present, the total volume of available fund capital, including debt capital, would permit real estate investments of about €7 bn. The equity stake stands at just over €4 bn.
Of the existing capital commitments, some €2.8 bn, including debt capital, has already been invested.
'Our successful entry into the real estate market shows that the Master-KVG principle, i.e. the separation between administration and asset management, also works in the real estate sector. Institutional investors now wish to combine all asset classes on one single platform, irrespective of the individual asset class,' said Alexander Tannenbaum, managing director of Universal-Investment responsible for the real estate business.
The 30 real estate investors in the special funds include leading pension funds and insurance companies. These mandates are currently being managed by 16 asset managers around the globe. Most of the investment strategies have a global focus, but special mandates also exist for properties such as German retail parks and neighbourhood centres.
Outside Germany
By volume, the geographic distribution of the properties clearly shows a focus on regions outside Germany. Some €1.5 bn was invested in 30 properties outside Germany, while over 130 properties within Germany account for the remaining €1.3 bn in investments.
Universal-Investment is the largest independent investment company in German-speaking Europe. It has €245 bn under administration, including €200 bn in its own vehicles, over 1,000 funds and investment mandates and a workforce of around 550.