Commerz Real AG just signed a contract for the sale of its investment company Commerz Real Spezialfondsgesellschaft mbh (CRS). The buyer is a subsidiary of the Internos Group whose cross-European business focuses on institutional investors, and whose plans aim at a massive expansion of its German business and investors base. As it is, investments on the German market account for the majority of Internos’ €1.9 billion in real estate assets under management. At the same time, Commerz Real reaffirmed its commitment to the institutional investment business.
The sale is subject to approval by the German Supervisory Authority for Financial Services (BaFin). The two parties to the contract agreed not to disclose the sales price and other transaction details.
The real estate portfolio of the nine funds managed by CRS includes 68 European office, retail, hotel and logistics properties in a total value of €1.6 billion. Not included in the sales transaction are the stakes held in Amprion (the former extra-high voltage network of RWE) that an investor syndicate acquired under the aegis of Commerz Real in 2011. These shareholding interests will remain under the management of Commerz Real Group. Commerz Real continues to consider infrastructure an attractive asset class, and intends to continue to conduct transactions in the sector.
CRS has proven to be less profitable than other product areas of Commerz Real. Providers like Internos who concentrate on the institutional fund market benefit from a competitive advantage here. That being said, the disposal of CRS does not mean that Commerz Real is withdrawing from the institutional investor business. The main fortes of Commerz Real include the structuring of tailored product solutions, and asset management. Looking forward, institutional investors will benefit from this within the framework of various investment structures such as real estate club deals across asset classes.
Source: Commerz Real