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Deka-Immobilien Manager Selektion Europa
Take advantage of European real estate market opportunities

Diversify your real estate portfolio with a single investment. Our fund of funds participates in promising target funds that invest in the European real estate market. Have confidence in the specialist experience of our Deka-Immobilien experts.

Market situation –
the stability of the European real estate markets is compelling

 

High demand for real estate persists for a number of reasons. Real estate offers low correlation to other asset classes, while stable returns can be expected in a challenging market environment. This asset class is also interesting because the difference in yields on commercial real estate and ten-year German government bonds is still sizable.

 

Fundamental data is also strong, meaning the European real estate markets remain stable. The main factors driving the market are the excellent economic environment and the resulting high occupancy rates. The transaction volume for European commercial real estate rose considerably year-on-year in 2018, indicating sustained high levels of investor demand.

Europe transaction volume by asset class

As at: June 2019; Source: CBRE

Product ideas –
Deka-Immobilien Manager Selektion Europa

 

The real estate fund of funds Deka Immobilien Manager Selektion Europa contains liquid and established European core markets and core properties. The fund is particularly suited for savings banks and investors subject to specific reporting requirements under the German Insurance Supervision Act (Versicherungsaufsichtsgesetz - VAG). The low-risk portfolio based on a stability-driven investment strategy consists of selected target funds of leading international property managers. It is focussed on office, retail, logistics and hotel usage types.

  • Persistent interest rate-driven demand for real estate results in a high transaction volume
  • Few investment alternatives in the low-rate environment
  • Investors plan to raise real estate allocations further and are making greater use of external support in doing so.
  • Internationalisation trend increasing
  • Greater diversification by type of use and investment style
  • Widely diversified investments in real estate offer the prospect of stable returns
  • Low correlation with alternative investments
  • Limited market access and many specialists
  • Deka – an experienced partner in fund of funds management
  • Access to external best in class initiators
  • Exploiting market opportunities for different usage types such as office, retail, logistics and hotel
  • Broad diversification ensured from EUR 10 million
  • Service package for investors
  • Open-ended German special fund (section 284 of the German Investment Code (Kapitalanlagegesetzbuch - KAGB); VAG-compliant, suitable for master fund investments
  • Target capital: min. EUR 250 million
  • Target distribution yield: 3.0-3.5% p.a. (yield in financial year 2018/19: 3.9%)
  • Target return: 3.5-4.0% p.a. (return in financial year 2018/19: 3.9%)
  • Expected capital call within 12 months

Olaf Kretke - Head of Alternative Investments Deka Immobilien Investment

1. Why choose a fund of funds solution?
 

A fund of funds gives investors the chance to get to know a wide range of managers and build up a correspondingly broadly diversified portfolio. A further advantage of our fund of funds solution is that investors can directly participate in existing target fund portfolios, thus quickly achieving total investment.

Olaf Kretke - Head of Alternative Investments Deka Immobilien Investment

2. How are the target funds selected?
 

We first draw up a shortlist from an investment universe of some 8,000 target funds. We then conduct a thorough SWOT analysis of the potential target funds and target fund managers to identify their strengths, weaknesses, risks and also track record. This is a very in-depth process. We believe that a detailed target fund analysis is a key success factor.

Olaf Kretke - Head of Alternative Investments Deka Immobilien Investment

3. How is the portfolio constructed?

We focus on target funds that invest in established European core markets and selectively in other regions, such as North America. As our focus is on current rental income, core properties in prime locations leased to tenants with long-term commitments and strong credit ratings constitute the main element of our portfolio.

Olaf Kretke - Head of Alternative Investments Deka Immobilien Investment

4. What other advantages does Deka Immobilien Manager Selektion Europa offer investors?

The portfolio is actively managed, which also means that we are in constant communication with the management of the target funds and act proactively on behalf of investors, such as when discussing the purchase pipeline, financing issues or voting on acquisitions or disposals.

 

Deka Immobilien:
A competent partner for more than 50 years

  • Ranks among the “Top 3” of Europe’s largest real estate asset managers, with a team of around 500 real estate professionals
  • Real estate assets under management: approximately EUR 38 billion
  • 507 managed properties in 26 countries on 5 continents
  • Extensive experience in the European real estate market and in-depth knowledge of each location
  • External bodies have confirmed Deka’s outstanding management expertise time and again
  • Comprehensive reporting and risk management

 

As at: September 2019; Source: Deka Immobilien

 

Fund profile
“Best in class” approach guarantees top quality

 

With a relatively low capital investment, institutional investors can access best in class initiators, which is otherwise generally only possible with large investment volumes. Our focus on European core markets highlights the product’s strategy of safe investment.

Investment

Core/core+ properties

focus on core/core+ strategies

Sectors

Broad diversification
exploitation of market opportunities in office, retail and logistics properties

 

Target market

Europe
investment in liquid and established European core markets

Allocation ranges

Key data

All information on Deka-Immobilien Manager Selektion Europa

Investment style:

core/core+
Target sector: diversified
Target markets: Europe
Investment volume: min. EUR 250 million
Term: unlimited
Forecast target distribution: approx. 3.0 - 3.5% p.a.
Target gearing ratio: 0% at fund of funds level
Legal form: open-ended German special fund
(section 284 KAGB); VAG-compliant, suitable for master fund investments

Target group:

institutional investors
Communication:

information via investor colloquium

Product launch:

Q3 2018

Minimum investment:

EUR 10 million

Reporting:

monthly

 

Deka Immobilien Manager Selektion Europa is a pan-European core/core+ real estate fund of funds that invests in selected target funds under professional management. The concept is VAG-compliant, suitable for master fund investments and is focussed on Europe. Smaller additions from outside Europe are possible in order to optimise the risk/return profile.

 

Investment in various real estate funds enables efficient diversification across countries, sectors, properties, strategies and top-notch managers. Investors can participate directly in property fund portfolio development. They also benefit from reporting tailored to their needs, as well as from established risk management and Deka Immobilien’s wealth of expertise acquired over many years. Potential risks can be identified early on thanks to access to the proprietary research department and specialised risk controlling. Deka products are not included in order to ensure independent target fund selection.

Legal Information

The sole binding basis for the purchase of Deka investment funds is the relevant key investor information, prospectuses and reports, which are available in German from your savings bank or Landesbank, or from DekaBank Deutsche Girozentrale, 60625 Frankfurt, Germany, and at www.deka.de.

This document does not contain all information relevant to the purchase of this financial instrument. The full prospectus contains a detailed description of the risks. The information in this document does not constitute an offer, investment advice or a recommendation to purchase financial instruments. The document cannot replace individual advice to the investor (e.g. from a bank or an advisor). DekaBank assumes that all investors perform their own analysis and assessment before concluding any transaction, as well as making their own decision in this regard. Investors should seek independent professional advice as needed. They are advised to note particular sales restrictions and distribution rules in different jurisdictions. In particular, the financial instrument described here may not be offered for purchase or sale in the United States or to, or for the benefit of, US persons.

 

This information has been carefully prepared. It contains some statements of opinion, which reflect our current assessment at the time this information was prepared. The assessment may change at any time without notice. Some of the data used originates from third party sources that we consider to be reliable. We assume no liability for the completeness, currency or accuracy of the information provided herein. The sole binding basis for the purchase of Deka investment funds is the relevant key investor information, prospectuses and reports, which are available in German from DekaBank Deutsche Girozentrale, 60625 Frankfurt, Germany, and at www.deka.de.

Opportunities

  • Attractive return opportunities through indirect investment in international commercial real estate
  • Use of different real estate market cycles
  • Collaboration with professional fund managers
  • Properties in top locations offer potentially strong performance
  • Reliable rental income through long-term leases
  • Investment in sector and market specialists for the target markets and types of use identified

Risks

  • Investments outside euro zone are subject to exchange rate fluctuations
  • Economic cycles influence real estate performance.
  • Broad diversification is not automatically given in the fund’s start-up phase.
  • Indirect investment in real estate means that typical real-estate risks at target fund level, such as loss of rent, etc., can result in price declines for the fund of funds.
  • Extensive redemptions or suspensions of unit redemption at target fund level may result in delayed redemptions or suspension of redemption for the fund of funds (liquidity risk).
  • Differing valuation approaches in the respective target funds may result in fund price fluctuation.

Contact

Deka Institutionell – Vertriebsservice

Phone: +49 (0) 69 71 47 -11 17

 

Or write us an e-mail and we will process it as soon as possible.

deka-institutionell@deka.de