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.

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:

Selection of certified  buildings in Europe and overseas:

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.