Monday, 9 March 2015
Universal-Investment set to invest more than €500 mln during 2015 (EU)
Over the course of 2015, Universal-Investment is set to contractually secure real estate properties with a value in excess of €500 mln on behalf of institutional investors via its Master-KVG / administration platform, reflecting the strong demand on the part of institutional investors such as pension funds or insurers for real estate as a reliable source of yield in a low-interest-rate environment.
Only a few days ago, Universal-Investment acquired the 160th property for its real estate special fund via its own platform.
Since Universal-Investment, the largest Master-KVG in Germany, entered the real estate market in 2011, the company has launched 12 real estate special funds for institutional investment funds. Two more funds are currently in the inception phase. At present, the total volume of available fund capital, including debt capital, would permit real estate investments of about €7 bln. The equity stake stands at just over €4 bln. Of the existing capital commitments, some €2.8 bln, including debt capital, has already been invested.
“Our successful entry into the real estate market shows that the Master-KVG principle, i.e. the separation between administration and asset management, also works in the real estate sector. Institutional investors now wish to combine all asset classes on one single platform, irrespective of the individual asset class,” says Alexander Tannenbaum, Managing Director of Universal-Investment responsible for the Real Estate business.
The 30 real estate investors in the special funds include well-known pension funds, insurance companies and companies. These mandates are currently being managed by 16 asset managers around the globe. Most of the investment strategies have a global focus, but special mandates also exist for properties such as German retail parks and neighbourhood centres.
By volume, the geographic distribution of the properties clearly shows a focus on regions outside Germany. Approximately €1.5 bln was invested in 30 properties outside Germany, while over 130 properties within Germany account for the remaining €1.3 bln in investments. By investment volume, the geographic focus is on Germany (47%), followed by North America at 17% and Europe at 14%.
In terms of sectoral distribution, which is also measured by volume, office buildings predominate, accounting for 45% of all real estate investments and followed by retail parks / neighborhood centers as well as residential real estate at 22% and 7% respectively.