Commerz Real will merge its two open-ended real estate funds to create Europe’s largest open-ended real estate fund with a volume totalling €12bn (£11bn).
The two funds – called hausInvest europa and hausInvest global – will be merged by 30 September 2010.
The combined portfolio will include 125 high-end commercial properties in 19 countries.
Commerz Real, the real estate asset management arm of Commerzbank, said 87% of the fund’s assets will be located in the stable markets of Europe, and 13% in Asia and
After the merger, the new fund will operate under the name hausInvest.
Erich Seeger, member of the board of Commerz Real and in charge of fund sales, said: “In regard to open-ended real estate funds – and thus to the merged ‘hausInvest’ fund, too – it is safe to say the larger the fund volume and the wider the diversification of the real estate by various criteria are, the lower will be the relative ramifications of temporary market events, and the more autonomous that fund will be in its activities.
“The merger of the two ‘hausInvest’ funds will make the best of two worlds available to our investors.
“We will combine the stability of a comprehensively diversified real estate portfolio marked by a European focus with an expanded opportunity potential that arises from the addition of a global component.”
