Munich Re's MEAG launches European office property fund, targeting ESG



Munich Re’s MEAG has launched a new European core office property fund, which will focus on high-quality office properties in prime locations in Europe’s top venues.

Both Munich Re and global Spanish insurer, MAPFRE, will be partnering as seed investors, as they will be contributing to the initial asset portfolio with existing core properties they are holding in Germany and Spain respectively.

In a press release, it states that these joint efforts by Munich Re and MAPFRE are underlining the well-established partnership between them.

Both insurers have been successfully working together for many years, therefore expanding the scope of their strategic partnership around this new fund in the asset management area is the next logical step.

Furthermore, the fund considers both environmental and social aspects an integral part of its investment strategy. It also complies with the requirements of Article 8 of the SFDR as a sustainable investment solution, with a focus on decarbonisation through higher energy efficiency and lower carbon footprints, in line with the Paris Agreement.

Therefore, this further emphasises the sustainability ambitions of Munich Re, MEAG and MAPFRE, and caters to the ever-growing demand for the sustainable investment solutions in the institutional agreement.

In addition, following its initial phase, the fund will purchase further European office properties across Europe, to help build a pan-European portfolio.

The fund volume is also intended to reach around €500m by 2023, and in 2024 the fund will be open for investments by other institutional investors from Germany and Europe, underlining MEAG’s ambitions to further expand their business in the institutional clients segment. This is expected to grow the fund to €1bn by 2025.

“I am delighted that with this collaboration, we are able to extend and deepen our relationship with our insurance partner of many years standing, MAPFRE, to now also encompass asset management”, said Nicholas Gartside, CIO and Member of the Board of Management of Munich Re.

“It is strategically important for Munich Re to enrich our interlocked business model with asset management activities, and to offer value-adding services to our clients.”

Fernando Mata, MAPFRE CFO and a member of the Board, added, “In recent years we have diversified our portfolio with alternative funds as a result of the very low rate environment. And we have always done so with the best partners. That is why we are proud to embark on this new alliance with Munich Re, a partner we have been working with for so many years, now in the real estate sector.”

Frank Becker, MEAG Managing Director responsible for institutional clients, also commented, “Over the last years, we have successfully grown our footprint in the institutional investor segment as the partner of choice, and we continue to do so. This is the case for traditional asset classes as well as real assets, as we provide holistic and tailor-made solutions in both segments. High-quality, well-diversified office property investments continue to be an important building block in institutional portfolios.

“During the pandemic, attractive office properties in central locations have proven again to be a potential source of steady income. Therefore, we are happy to add to our range of investment solutions with a new property fund supporting our clients’ needs.”

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