Key Takeaways
- • BVK, Germany's largest pension fund with total assets of €62 billion, awarded Frankfurt-based Universal-Investment a €3.6 billion real estate mandate, reported by PEI on 10 October 2016.
- • The mandate is BVK's fifth major real estate allocation of 2016, lifting its total real estate commitments for the year to €5.7 billion.
- • BVK plans to deploy the €3.6 billion through Luxembourg alternative investment fund (AIF) structures, using an umbrella fund that lets it appoint sector-specific real estate specialists.
- • A related PERE listing describes the deal as the sixth significant mandate of the year, bringing the 2016 total to €6.2 billion, so the count of mandates and the year-to-date total differ across sources.
Summary
Germany's largest pension fund, BVK, has awarded Frankfurt-based asset manager Universal-Investment a €3.6 billion real estate mandate, according to PEI, which published the report on 10 October 2016. The agreement is BVK's fifth major mandate of 2016 and raises its total real estate allocations for the year to €5.7 billion. BVK manages total assets of €62 billion, according to PERE.
BVK intends to eventually invest the €3.6 billion through Luxembourg alternative investment fund (AIF) structures. PERE reports that the umbrella fund structure allows BVK to appoint real estate specialists suited to each sector and to flexibly allocate capital across them. A related PERE headline references a separate BVK commitment of €3.6 billion to Asia-Pacific property, though the available material does not confirm whether that refers to the same vehicle.
A related PERE listing describes the Universal-Investment deal as BVK's sixth significant mandate of the year, with the 2016 total reaching €6.2 billion. This differs from the fifth-mandate and €5.7 billion figures in the primary report and should be treated as an unresolved discrepancy. The transaction illustrates the continued shift of German institutional capital toward externally managed, multi-manager European real estate platforms.
BVK intends to eventually invest the €3.6 billion through Luxembourg alternative investment fund (AIF) structures. PERE reports that the umbrella fund structure allows BVK to appoint real estate specialists suited to each sector and to flexibly allocate capital across them. A related PERE headline references a separate BVK commitment of €3.6 billion to Asia-Pacific property, though the available material does not confirm whether that refers to the same vehicle.
A related PERE listing describes the Universal-Investment deal as BVK's sixth significant mandate of the year, with the 2016 total reaching €6.2 billion. This differs from the fifth-mandate and €5.7 billion figures in the primary report and should be treated as an unresolved discrepancy. The transaction illustrates the continued shift of German institutional capital toward externally managed, multi-manager European real estate platforms.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.