Union Investment sets up single-investor real estate funds for SDK Group (DE)
Tuesday 17 July 2012
An umbrella fund concept for bringing together indirect investments in property has been implemented in conjunction with health insurance company Süddeutsche Kranken- und Lebensversicherung aG.
Union Investment is expanding its product range for institutional investors by creating special funds for bundling indirect property investments. Two funds with a target volume of €250 million have been set up with the aim of consolidating the SDK Group’s existing indirect investments in property and further diversifying the portfolio over the next few years.
Under this mandate, Union Investment will provide fund administration services to the SDK Group and assist with strategic focus and selecting new target funds. The SDK-Immoselect and SDL-Immoselect solutions will invest in real estate funds and similar open-ended vehicles.
The investment strategy is essentially conservative, i.e. the focus is on solid returns and economic sustainability. The aim is to build a diversified European portfolio with a strong focus on individual sectors such as retail, healthcare and industrial. Exposure to alternative investments like timber also forms part of the strategy.
“We are delighted to be working on this sophisticated mandate. It further highlights the trust placed by institutional investors in our structuring skills and fund management expertise,” says Dr. Christoph Schumacher, Member of the Management Board of Union Investment Institutional Property GmbH, Hamburg.
“Union Investment came out top against other asset managers following a rigorous due diligence process. We’re confident that Union Investment is the right real estate partner for us, on both an administrative and strategic level, enabling us to manage our real estate investments successfully going forward,” adds Jan von Graffen, Head of Asset Management at SDK Kranken Leben Allgemeine.