GERMANY - German real estate company Warburg-Henderson has launched a Master KAG subsidiary and already won its first client.
IntReal will provide foreign and German asset managers with a Master KAG structure needed to offer funds to institutional investors in Germany.
The Master KAG takes care of the administration and regulatory side as well as risk management while the client is responsible for the performance of the fund, asset and property management.
The first customer is the European logistics fund of the HIH Hamburgische Immobilien, which is looking to reach approximately €500m in assets under management.
Warburg-Henderson's new subsidiary is expected to attract €1bn of business per year.
The service is aimed at German and institutional asset managers, project developers, proprietors and initiators of closed funds which do not have a KAG license, Warburg-Henderson said.
"We see a strong wish to gain German investors, especially from international asset managers" said Henning Klöppelt, chief executive at IntReal, who also heads Warburg-Henderson.
He runs IntReal jointly with Eitel Coridaß and Detlef Mertens.
Meanwhile, German real estate company IVG has reported a €1.7bn increase in its assets under management over the last year to €12bn and a rise in number of managed mandates from 10 to 13.
"As a result, IVG Institutional Funds will probably increase its market share in the current year in terms of assets under management - from approximately 28% to more than 31%," IVG said in a statement.
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