Real estate assets 2020 increase by EUR 3 billion to EUR 42.5 billion
A good start to 2021: EUR 600 million net sale in January
Transaction volume EUR 5.7 billion in 2020 / real estate financing arranged in the amount of EUR 2.2 billion
Deka Immobilien is continuing to grow steadily, irrespective of the coronavirus pandemic: Real estate assets under management rose by EUR 3 billion to EUR 42.5 billion in 2020. And since the beginning of 2021, real estate funds continued to be in high demand with retail clients: Net sales are at EUR 600 million in January. EUR 380 million of this was due to reinvestment of distributions. "In view of the share price fluctuations in the last year, our real estate funds were a stabilising factor in the securities accounts. That is also why retail investors continue to rely on real estate", says Dr Matthias Danne, member of the DekaBank Board of Management responsible for Asset Management.
High level of transaction volume Irrespective of the travel restrictions due to the coronavirus pandemic, the transaction volume for the open-ended real estate funds and special funds were at a high level in 2020, with a total of EUR 5.7 billion. EUR 4.8 billion of this amount was due to acquisitions and EUR 900 million to sales. Retail funds acquired 24 properties for EUR 3.2 billion and sold 9 properties for EUR 800 million. Institutional funds acquired 20 properties for EUR 1.6 billion and sold 2 properties for a total of EUR 40 million.
Performance with the retail funds between 1.5% and 2.5% The open-ended real estate funds for retail investors of Deka showed steady development in spite of the restrictions caused by the coronavirus pandemic. Nevertheless, the closure of retail shops and hotels still left their mark. In 2020, performance with the retail funds was between 1.5% and 2.5%. "Our open-ended real estate funds for retail investors are broadly diversified geographically and in terms of sectors and therefore have a high risk-bearing capacity. We are more cautious in our investments in retail properties and hotels compared with the sector as a whole. This noticeably dampens the impact of the Corona situation", says Esteban de Lope Fend, Managing Director of Deka Immobilien.
Institutional business expanded In the institutional area, the net sales were at EUR 900 million in 2020. "Institutional investors were largely unimpressed by the upheavals of the coronavirus crisis. Therefore, our funds show hardly any cash outflows. Institutional investors continue to rely on real estate, as they generate predictable earnings in a low-interest rate environment", adds de Lope Fend. The real estate assets in the institutional area were expanded further through acquisitions in the amount of EUR 1.6 billion. In addition to its own funds, Deka Immobilien also allows investors to invest in funds from cooperation partners by using its "Deka Immobilien Kompass" range of services.
Occupancy rate of 95.7% The leasing performance through the conclusion of lease agreements was at a high level in 2020 with a net annual rental volume of EUR 330 million. In addition to this, agreements were concluded during the course of renegotiations due to the coronavirus crisis with a volume of EUR 86 million. The occupancy rate at the end of 2020 in the overall portfolio was at 95.7%.
Total customer assets grow to EUR 45.7 billion The positive development of the Real Estate business division in 2020 is also shown by the growth in total customer assets. These rose by EUR 3.5 billion to EUR 45.7 billion at the end of the year. EUR 32.9 billion of this was in the retail area and EUR 12.8 billion in institutional products. Net sales were at EUR 3.4 billion in 2020, including EUR 900 million in the area of institutional investors.
EUR 2.2 billion in new real estate lending EUR 2.2 billion in new real estate financing was recorded in 2020 (including EUR 300 million from renewals). EUR 500 million in placements were made. EUR 300 million of this amount was for placements with companies in the German Savings Bank Finance Group (Sparkassen-Finanzgruppe).
DekaBank is the Wertpapierhaus (securities services provider) of the German Savings Banks Finance Group. Together with its subsidiaries it forms Deka Group, which has total customer assets of around EUR 323 billion (as at 30/09/2020) and around 4.9 million securities accounts, making it one of the largest securities services providers and real estate asset managers in Germany. It provides retail and institutional clients access to a wide range of investment products and services. DekaBank is firmly anchored in the Sparkassen-Finanzgruppe and designs its portfolio of products and services to meet the requirements of its shareholders and sales partners in the securities business.
The Deka Group’s global real estate expertise is pooled in its Real Estate Division. The management companies, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH provide management and support for around EUR 43 billion in real estate assets (as at 31/12/2020).
Dr. Daniela Gniss
Immobiliengeschäft private und institutionelle Kunden, Immobilienfinanzierung, Personal, IT, Recht