Aareal Immobilien Kapitalanlagegesellschaft (KAG), Aareal Asset Managementâs German investment management company, has launched a property âspecial fundâ (Spezialfonds â" a separate account under German investment law) exclusively for a German insurance group. For this purpose, Aareal Immobilien KAG has taken on a large portfolio comprising office properties worth approx. â¬ 600 million in economically strong regions in Germany, creating the fund by way of contribution.
Charles Pridgeon, Head of Aareal Asset Management, comments âThe fund volume involved in this transaction was roughly equivalent to 50 percent of new investments attracted by all German property special funds during 2004. In terms of fund volume, Aareal Immobilien KAG â" which was only established at the beginning of 2004 â" has already evolved into one of the major mid-sized providers of property special funds in Germany. We leverage our vast experience in structuring complex asset contributions.â
Dr. Ulrich Nack, Managing Director of Aareal Immobilien KAG, adds: âContributing property assets into a special fund offers numerous benefits to institutional investors. Besides being easy to handle and tax transparent, such funds fully qualify as cover assets within the framework of legal restrictions on the proportion of property assets held by insurers and pension funds.â
Established in Wiesbaden at the beginning of 2004, Aareal Immobilien Kapitalanlagegesellschaft manages institutional property funds established as open-ended separate accounts (Spezialfonds) in accordance with German investment law. Fund assets are invested on an international scale, broadly diversified across a range of property types. Aareal Immobilien KAG focuses on German institutional investors, but also covers international clients. The company also manages the Aareal Nordic Fund, which focuses on property in Sweden, Finland and Denmark, and has a planned investment volume of â¬ 250 million.
Source: Aareal Bank