Aareal Immobilien Kapitalanlagegesellschaft (KAG), Aareal Asset Management’s German investment management company, has launched a property ‘special fund’ exclusively for a German insurance group.
The asset manager has bought a e600m office portfolio in what it describes as “economically strong” regions of Germany to seed the fund.
Charles Pridgeon, head of Aareal Asset Management, said “The fund volume involved in this transaction was roughly equivalent to 50% of new investments attracted by all German property special funds during 2004.”
Dr Ulrich Nack, managing director of Aareal Immobilien KAG, added: “Besides being easy to handle and tax transparent, such funds fully qualify as cover assets within the framework of legal restrictions on the proportion of property assets held by insurers and pension funds.”