Institutional Real Estate Europe
September 1, 2012: Vol. 6, Number 8Buy For $150.00 Add to Cart
Through the Slack: After a Temporary Slowdown, German Open-End Property Funds Are Picking Up Speed Again
This is what happened to German open-end property funds — a favoured long-term investment vehicle for conservative, prudent German retail investors — which went through a period of heady returns in the first part of the 2000s; which saw high inflows of new monies from both retail and institutional investors seeking those returns; and which then experienced a rush for the door when the market turned, from both the long-established and the newer investors.
Calculating on Currencies: How Does Currency Affect Office Market Real Estate Returns?
Cross-border investment in real estate raises the question of movements between the currency of the country in which the real estate assets are located and the home currency of the investor. Should investors hedge, or is the strength of the currency in a foreign location all part of the attractiveness of overseas real estate investment?
A Strong Case: Investors Should Look Beyond Short-Term Events and Consider the Reasoning for Raising Their Exposure to Real Estate
Arguably, the economic context for institutional investment has never been more uncertain. This is particularly the case in Europe, where the euro zone sovereign debt crisis overlays substantial additional risk. Normally, an illiquid asset such as real estate would be out of favour under such circumstances, with investors looking for highly liquid assets to maintain flexibility. Yet the underlying qualities of real estate mean that in many ways it is well suited to cope with today’s volatile economic environment.
An Unstable World: Real Estate Investors Seeking Comfort in these Volatile Times Need to Know and Understand their Investment Managers Better
Today's economic environment — which presents an acute problem for pension funds that are squeezed between low and falling asset returns and higher and increasing liabilities — calls for rethinking, or at least challenging, the way in which some pension funds approach real estate investment. This short article is intended to be a bit provocative and to challenge some of the common wisdom.
Catering for Demand: Turkey Is an Attractive Market for Domestic and International Retailers and for Providers of Modern Retail Space
In Part 2 of this article on Turkey, the authors discuss how favourable demographic and economic trends have resulted in growth in consumer spending and widespread real estate development, particularly in the retail sector and the shopping centre subsector. Part 1, in the July/August 2012 issue, looked at the country’s macroeconomic and political environment.
IVG Lists German REIT
IVG Immobilien AG applied for admission to the Munich Stock Exchange of a German REIT, IVG Immobilien Management REIT AG, in July.
- Kennedy Wilson Buys Irish Luxury Apartment
- MGPA Buys German Shopping Centre
- Natixis and AEW Europe Debt Fund Raises €240 Million
- Orchard Street Buys UK Industrial Estate
- Prologis Buys Asset in Barcelona
PURetail Fund Buys French Retail Centre
Cushman & Wakefield Investors (CWI) and Scottish Widows Investment Partnership (SWIP) have acquired a shopping centre in Dijon, France, on behalf of the Pan-European Urban Retail Fund (PURetail), which is managed through a joint venture between CWI and SWIP.
- Tristan/AEW Europe Fund Sells Centre in Finland
Union Investment Sets Up Two Funds for SDK Group
Union Investment Institutional Property GmbH has created two funds with a target volume of €250 million to consolidate the existing indirect property investments of health insurance company Süddeutsche Kranken- und Lebensversicherung (SDK Group).
- AXA Real Estate Sells Swedish Portfolio
Boots Pensions Hires Schroders for UK Mandate
Boots Pension Scheme has hired Schroder Property Investment Management Ltd for a diversified UK property mandate.
Commerzbank Winds Up Commercial Real Estate Finance Business
Commerzbank is winding up its commercial real estate financing and ship finance segments into a new Non Core Assets (NCA) segment.
Cordea Savills Holds First Close for London Residential Fund
Cordea Savills has held a first close of the Prime London Residential Development Fund with £25 million (€31.5 million) of initial equity from a major global private bank.
Forum JV Buys Serviced Offices in London
Forum Partners, through its Forum European Realty Income Fund III, and Office Space in Town, a specialist serviced office operator, have made the first investment through their joint investment vehicle, London Serviced Offices Ltd (LSO).
Hannover Leasing Buys Dutch Offices
Hannover Leasing, on behalf of a closed-end real estate fund, has acquired a class A office building in Rotterdam for €34 million.
Henderson Launches German Logistics Fund
Henderson Global Investors is launching a German Logistics Fund, which will target good quality German logistics assets in locations such as Stuttgart, Bremen, Hamburg, Munich, Frankfurt, Düsseldorf and Cologne.
Hines, HAIL Venture Buys London Office Complex
A joint venture between Hines and HSBC Alternative Investments Ltd (HAIL) has acquired the Broadgate West office complex in the City of London from a private company owned by Peter Marano and Michael Dennis.
Internos Holds First Close of Hotel Fund
Internos Real Investors has held a first close of its Internos Hotel Real Estate Fund with €75 million in equity from four German institutional investors.
IPD Global Cities Update: Seeking Safe Havens
Many major global markets have now recovered to pre-recession levels, particularly those cities with commodity-driven economies. Canada’s energy boom has spurred capital value appreciation in Toronto and Vancouver above other North American markets.