Preqin’s Real Estate Online contains detailed profiles for over 4,700 institutional real estate investors, including 124 based in Germany. Insurance companies and private sector pension funds account for half of all investors based in Germany, at 26% and 24% respectively. Family offices and asset managers also make up a sizeable proportion of the investor universe, at 13% and 11% respectively. Public sector pension funds only account for 8% of the German investor universe.
In terms of assets under management (AUM), the majority (52%) of Germany-based real estate investors possess less than €10bn. Thirty-five percent of institutions have between €10bn and €49.9bn in total assets, and just 9% have €100bn or more under management.
When looking at investors in terms of their allocations to real estate (as a proportion of their AUM), the chart below shows that the largest proportion of investors (33%) allocate between 5% and 9.9% to the real estate asset class. Only 11% of this investor group allocates 20% or more to real estate.
When making commitments to private real estate funds, core strategies are by far the most sought-after by Germany-based real estate investors, with 80% targeting the strategy. This is significantly more than the second most sought-after strategy, value added funds, with 53% of institutions seeking funds following this strategy. The least favoured strategies of German institutions are debt and distressed; only 13% of this investor group have a preference for each of these fund types.
Preqin’s Real Estate Online contains details of 280 investors seeking to make new real estate investments in the next 12 months via the Fund Searches and Mandates tool. One such Germany-based institution is asset manager Feri Trust, which is looking to invest €100mn across two private real estate funds in the next 12 months. This investor will seek additional exposure to non-core US real estate through these commitments.