With net retail inflows already exceeding EUR 800 million within the first four weeks of January, Deka Immobilien has made a good start to 2019. Around EUR 200 million of these inflows came from the reinvestment of dividends. “Our open-ended real estate funds continue to be in high demand by retail investors. In order to maintain fund quality, we continue to impose quotas on inflows”, said Dr Matthias Danne, member of the Board of Management of DekaBank, at the Deka Immobilien Dinner in Frankfurt. Deka’s European-focussed open-ended real estate funds demonstrated significantly above-average performance through 2018, with Deka-ImmobilienEuropa recording performance of 3.6 percent and WestInvest InterSelect delivering a return of 3.3 percent to its investors.
Institutional business: A key component
Alongside the retail element, our institutional business continued its development as an important pillar of our strategy in 2018, with net sales of EUR 900 million. Growth within our institutional area came principally from the expansion of existing products, such as the so-called “modular” system, as well as the launch of a new fund from the “Fokus” series in November 2018 - “Deka-Immobilien Fokus Tschechien” invests in logistics properties within the Czech Republic. Total assets under management within our modular system reached EUR 4.9 billion by the end of the 2018. This system comprises of the open-ended office-only real estate mutual fund WestInvest ImmoValue, which is aimed exclusively at professional investors, as well as three sector-specific funds specialising in hotels, retail and logistics properties, respectively. “Deka Immobilien had around 400 institutional clients at the end of 2018, and we intend to continue the growth of our institutional business in 2019”, added Danne. In addition to its own funds, Deka Immobilien also allows investors to invest in funds from our partners by using its “Deka Immobilien Kompass” range of services.
EUR 36.3 billion in real estate assets at the end of 2018
The growth of the Real Estate division in 2018 is also demonstrated by the increase of EUR 4.2 billion in real estate assets under management to EUR 36.3 billion (as at 31/12/2018). Net inflows were EUR 2.6 billion in 2018, including EUR 900 million from institutional customers. Total assets rose by EUR 3.8 billion to EUR 38.1 billion at the end of the year.
Transaction volume according to plan in 2018
The transaction volume for our open-ended real estate funds and institutional funds was on plan for 2018 with a total of EUR 4.5 billion. Of this total, EUR 3.9 billion was from acquisitions and EUR 600 million came from sales. Institutional funds acquired 28 properties for EUR 1.74 billion and sold three properties for a total of EUR 60 million. Retail funds acquired 34 properties for EUR 2.2 billion and sold 18 properties for EUR 500 million. In doing so, Deka was able to ensure that the optimisation of our portfolio was brought to the brink of completion, particularly through the successful divestment of properties that are no longer strategy-conform.
Net annual rental income of EUR 2 billion
Deka Immobilien once again increased its leasing performance over the previous year by agreeing leases with a net annual rental value of EUR 318 million. The total net annual rental income for all of the real estate funds was EUR 2 billion. The occupancy rate was 96.2 per cent at the end of 2018, the highest it has been for ten years.
Deka-ImmobilienEuropa recognised as No.1 for sustainability-certified buildings amongst peer group
A Scope report issued at the end of 2018 confirmed the sustainable orientation of Deka’s open-ended real estate mutual funds. It shows that Deka-ImmobilienEuropa’s certification rate of 82.4 per cent was the highest of the 14 funds examined. WestInvest InterSelect was in second place with 78.1 per cent.
EUR 2.9 billion of new real estate financing business
EUR 2.9 billion of new real estate financing was achieved in 2018 (including EUR 200 million from renewals), with placements made totalling EUR 800 million. Of these, EUR 600 million was successfully placed with companies from within the German Savings Banks 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 288 billion (as at 30/09/2018) and around 4.6 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 within its Real Estate Division. The two investment companies, Deka Immobilien Investment GmbH and WestInvest Gesellschaft für Investmentfonds mbH, and the service company, Deka Immobilien GmbH, manage and service around EUR 36 billion in real estate assets (as at 31/12/2018).