Deka Immobilien continues to grow
- A good start to the year: Net sales already at about EUR 1 billion in January 2020
- Transaction volume EUR 3.7 billion in 2019
- Sustainability: Certification rate 68 per cent
- EUR 4 billion in real estate financing arranged in 2019
Deka Immobilien continues to grow and recorded a high level of demand for its real estate funds for institutional and retail investors in 2019. This trend is continuing in 2020, with net retail sales at about EUR 1 billion in the first four weeks. Around EUR 350 million of this was due to reinvestment of distributions.
“We expect the level of demand for real estate to remain high in coming years. This is due to its great importance as an investment for retail clients and the ongoing low level of interest rates”,
stated Dr Matthias Danne, member of the DekaBank Board of Management responsible for real estate and finance, during the “Deka Immobilien Dinner” in Frankfurt.
New fund sales off to a good start
Due to continuing high demand for its products, Deka Immobilien decided to launch new open-ended real estate funds for retail investors in 2019. One of these is Deka-ImmobilienMetropolen, an open-ended real estate mutual fund that started distribution on 2 January 2020. It makes currency-hedged investments worldwide in commercial properties located in dynamically growing metropolitan areas. Net sales for the fund already exceeded EUR 100 million in the first four weeks. In addition, the new residential fund “Swiss Life European Living” has been offered exclusively to the savings banks since autumn 2019. It is managed by Swiss Life asset managers and distributed through the savings banks by Deka. Net sales have been EUR 90 million since the start of distribution in November. Deka’s proven quota system is used for both funds.
Institutional business further expanded
In addition to the retail funds, demand was also high for the investment solutions aimed at institutional investors, with net sales reaching EUR 800 million in this segment in 2019. Growth in the institutional area was due to the expansion of existing products, such as the so-called “modular” system, the Domus Deutschland series, funds of funds, the Fokus series and portfolio management mandates. The “modular” system had EUR 6.1 billion in total customer assets at the end of 2019. It includes the open-ended office real estate mutual fund WestInvest ImmoValue and three sector funds for the hotel, retail and logistics sectors. 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.
Real estate assets rise to EUR 39.5 billion at the end of 2019
The growth of the Real Estate division in 2019 is also shown by the increase of EUR 3.2 billion in real estate assets under management to EUR 39.5 billion (as at 31/12/2019). Net sales were EUR 2.9 billion in 2019, including EUR 800 million in institutional sales. Total customer assets rose EUR 4.1 billion to EUR 42.2 billion at the end of the year. EUR 30.6 billion of this was in the retail area and EUR 11.6 billion in the institutional area.
High level of transaction volume
Transaction volume continued at a high level of EUR 3.7 billion in 2019. EUR 3.1 billion of this amount was due to acquisitions and EUR 600 million to sales. Retail funds acquired 19 properties for EUR 2 billion and sold 16 properties for EUR 600 million. Institutional funds acquired 17 properties for EUR 1 billion and sold five properties for a total of EUR 50 million.
“Parc Commercial Les Dauphins“ in Mouscron, Belgium
Office building in Hamburg, Süderstraße
„ibis STYLES“, Stuttgart-Vaihingen
Occupancy rate of 96.5 per cent
The transaction activity and conclusion of lease agreements with a net annual rental volume of EUR 305 million maintained leasing performance at a high level. The total net annual rental income for all of the real estate funds was EUR 2.1 billion. The occupancy rate was an average of 96.5 per cent at the end of 2019, representing a further improvement over the previous year.
Sustainability: Certification rate 68 per cent
The certification of fund properties plays a key role in Deka Immobilien’s commitment to sustainability. The certification rate was at 68 per cent at the end of 2019, based on Deka Immobilien’s entire real estate portfolio.
Selection of certified buildings in Germany:
LEED Gold for the “Westend Sky” in Frankfurt
Following an extensive repositioning by Deka Immobilien, the building received LEED Gold certification for Core & Shell and meets the highest standards with respect to functionality, sustainability and a healthy indoor environment. In addition to an extensive energy-oriented renovation of the façade and building services, the floor plan was designed to provide modern office environments to meet tenant requirements. The newly designed exterior grounds provide a significantly larger amount of green space to create a pleasant environment.
“Tower 185” in Frankfurt am Main
The building was completed in 2011 and offers more than 100,000 m² of leasable space and 552 parking spaces. The building is the fourth tallest office building in Germany, is centrally located on Friedrich-Ebert-Anlage in the city centre and offers excellent access by public and private transport. It is leased to more than 20 high quality tenants with international interests under long-term leases. The main tenant is PricewaterhouseCoopers (PwC). The building has received Leadership in Energy and Environmental Design (LEED®) Gold certification.
“Fleethof” in Hamburg provides high level of user comfort
The “Fleethof”, a prestigious 6-story office and commercial building located in Hamburg city centre, received “BREEAM DE Bestand” (BREEAM In-Use based on German standards and norms) sustainability certification with a rating of “Very Good”. The assessment particularly stressed the high level of user workplace comfort and good access by public transport.
“Windows” in Stuttgart
The “Windows” property at Theodor-Heuss-Straße 5, Stuttgart, has received BREEAM DE (Asset) certification with a rating of “Very Good”. The main reasons for the rating included its maintenance strategy, security concept and highly flexible layout and services.
“Eleven” in Hamburg receives LEED Existing Buildings Operations and Maintenance Gold.
The “Eleven” office building in Hamburg has received LEED® Existing Buildings Operations and Maintenance Gold certification. Tenant cooperation and investments in water efficiency and non-smoker protection were needed to achieve this. 75 percent of the tenants use public transport, thereby documenting the sustainability of the location.
Helfmann-Park 1, Eschborn
The property at Helfmann-Park 1, Eschborn, was granted BREEAM DE (Asset und Building Management) certification with a rating of “Good”. Installation of new central cooling equipment in 2013 allowed annual energy savings of 25 percent.
Selection of certified buildings in Europe and overseas:
"Verde SW1" in London
This multi-tenant building in Victoria, a submarket of London West End, was built using climate-efficient materials in accordance with the latest standards. The “Ecodriver” energy platform allows proactive building energy management. The property also has a centralised waste management system controlled by an external service provider that ensures the greatest possible waste reduction. The building has received BREEAM “Excellent” certification for sustainability.
LEED Platinum for the tallest building in Austria
DC Tower 1 combines architectural aesthetics and an advanced “green” design and functionality. The tallest hotel and office building in Austria uses energy-saving lighting and air cooling, and zone activation and heat recovery in its ventilation systems. The tower also has a photovoltaic system and a free-cooling system that uses resources available in the environment for cooling.
“Atrium One” in Warsaw
This office and retail property is located in the heart of the capital city of Poland, right next to a subway and streetcar station. “Atrium One” has received LEED Platinum certification in the Core & Shell category, making it one of the “greenest” properties in the CEE region. The building contributes to sustainability by conserving energy and water, using the heat of the earth as regenerative and geothermal energy for heating and cooling, and making use of rainwater and grey water.
"City Green Court" in Prague
This eight-storey office and commercial building in Prague is the first building to receive LEED Platinum certification in the Czech Republic. Energy is conserved by using automatic lighting that depends on the light conditions outside the building. Rainwater is reused to conserve water. The large atrium uses natural ventilation.
Torre Titanium La Portad
This office tower has received LEED Gold certification for Core & Shell. It is located in the centre of the capital city of Santiago, Chile, and is one of the tallest and most modern buildings in South America. In addition to a good strategic location with respect to public transport, there are also close to 300 bicycle parking places available, and electric car parking places with charging stations. High-efficiency curtain walls ensure optimal lighting conditions and minimise solar insolation.
“Cannon Place” in London
The striking, fully glazed landmark building is located in the heart of London City, directly above the Cannon Street Metro Station. The building has more than 200 secure bicycle parking spots and is therefore ideal for commuters. The building has received BREEAM In-Use (Asset) “Excellent” sustainability certification.
1 St Peters Square, Manchester
The newly constructed office building at 1 St Peters Square, Manchester, includes a highly efficient building management system, offers excellent access by public and private transport and received BREEAM New Construction certification with a rating of “Excellent”.
“Gerngross Shopping Centre” in Vienna
The traditional Gerngross department store at Mariahilfer Straße 42-48, Vienna, received BREEAM Europe Commercial Retail sustainability certification with a rating of “Good” after an energy-efficient renovation during normal operations.
EUR 4 billion in new real estate lending
New business in the real estate lending area rose EUR 1.1 billion year-on-year to EUR 4 billion in 2019 (including EUR 400 million in renewals). EUR 1 billion in placements were made. EUR 700 million of this amount was for placements with companies in the German Savings Bank Finance Group.