Commerz Real will merge its two open-ended real estate funds to create Europe’s largest open-ended fund with a volume of €12bn.
The merger between hausInvest Europa and hausInvest global is intended to increase stability.
Global open-ended funds have experienced volatility as investors pull out their money. The German government is drafting legislation that would put the open-ended funds on a surer footing by requiring a longer notice period for institutional investors and minimum liquidity levels.
“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,” said Erich Seeger, Commerz Real board member.
Last year, Commerzbank, the fund manager’s parent company, talked to potential investors about a sale.
“The merger has nothing to do with this,” said Seeger.
“We are embarking on a strategic review and will present the results in the next two months,” he added.
The merged fund will operate as hausInvest by the end of September, and have a portfolio of 125 commercial properties in 19 countries.
