Corporate real estate creates Europes largest fund

Thursday, March 25, 2010

Continent's largest corporate real estate fund created with merger of worldwide and european resources

By Ashley Brunskill

The corporate real estate arm of Commerzbank has created the largest fund in Europe.

By merging its two open-ended funds HausInvest Europa and HausInvest Global, the combined resources stand at around €12.5 billion (£11.2 billion).

HausInvest will own 125 properties, of which 87 per cent are based in Europe and 13 per cent across Asia and North America.

Commerz Real's head of fund sales Erich Seeger believes the larger fund volume and more diversified portfolio could lessen investors' exposure to "temporary market events" and give them "the best of two worlds".

It is the latest major investment bank to expand its corporate real estate interest, as the subsidiary of Morgan Stanley Asset Management and Invesco both signalled steps in what could be an attractive market for large scale investors.

The firm currently bases its UK operations at the purpose-built investment bank offices at 30 Gresham Street in the City of London.

Source: ask-re The Property People LLP