Cordea Savills, the international real estate investment manager, has acquired International Property Asset Management GmbH (IPAM), a German real estate asset management company, for an undisclosed sum. The acquisition complements and expands Cordea Savills' existing German business and increases assets under management in Germany to approximately 1 billion.
IPAM was founded in 2006 and provides both transactional services and asset management, with a strong focus on the retail and office sectors, on behalf of both institutional and family office clients. The three principals, Thomas Lutz, Dr Axel Froese and Bruce Jenyon, will continue to work with their existing clients as well as forming part of the Cordea Savills management team in Germany. The rationale for the acquisition is to create a German-wide investment and asset management platform.
This furthers Cordea Savills' strategic aim of building scale and breadth of services in key markets, which also include France, the UK, Italy and the Nordics. It enables Cordea Savills to meet increasing institutional investor demand for access to both fund and asset management services from a single provider. It also means a better resourced platform for existing clients of both IPAM and Cordea Savills.
As a result of the acquisition, Cordea Savills now has offices in Munich, Düsseldorf, Stuttgart and Hamburg and a team of 35 people. In a decentralised market such as Germany, a German-wide platform is seen as essential for managing assets.
Justin O'Connor, Chief Executive Officer at Cordea Savills, commented: "This acquisition transforms Cordea Savills' proposition for clients investing in Germany. It delivers a substantial increase in assets under management, an expanded regional office network, increased resources and expertise, and a broader service offering."
"The acquisition underlines our commitment to being a leading property investment manager in Germany, the largest institutional investment market in Europe and increasingly seen as a safe haven in the current economic climate. We intend to continue to scale up our presence over the coming years to meet higher capital inflows."
Dr Axel Froese, Managing Director of IPAM, commented: "We are delighted to become part of a company with the reputation and quality of Cordea Savills. It is an excellent corporate fit and means we have an attractive offering for both existing and new clients."