Deka Immobilien is planning to launch three new open-ended real estate funds, responding to the continued high demand from private investors for their real estate products.
One of the funds will invest for the first time in the residential asset class. The other two vehicles will focus on real estate markets outside Europe.
The new global open-end real estate mutual fund will invest currency-hedged in commercial real estate in growing metropolises. The fund focuses on cities that profit from increasing urbanisation or globalisation. Such metropolises are, for example, New York, Toronto, Sydney or Seoul. Other target locations are selected based on their attractiveness for life and work. These include, for example, Amsterdam, Vancouver or San Francisco. It also focuses on properties in the core area and is intended to serve as an investment alternative to the three existing large open-ended real estate funds Deka-ImmobilienEuropa, WestInvest InterSelect and Deka-ImmobilienGlobal. The launch is scheduled for early next year.
The second open-ended mutual real estate fund offers the opportunity to participate in real estate investments in the Pacific-Asian region. It is aimed at experienced and wealthy private customers. The fund is listed in Australian dollars. This gives fund management greater investment scope in Australia. According to Deka forecasts, investors can earn higher returns on investments without currency hedging than in Europe. The launch is scheduled for the second half of 2020.
Private investors will have the opportunity to invest in a residential fund later this year. This open-ended real estate mutual fund will focus on modern apartments with average rents in major European cities and metropolitan areas. The fund will be launched and managed exclusively for distribution through the savings banks of Swiss Life Asset Managers.