German pension fund BVK launches global REIT fund
Bayerische Versorgungskammer (BVK) has launched a global REITs fund, hiring two managers to invest €300m.
Principal Global Investors will manage up to €150m in a dedicated REIT portfolio for BVK.
Germany’s largest occupational pension fund – with €59bn in assets – made the move as part of a diversification strategy as it widens its exposure to real estate.
Norman Fackelmann, head of real estate investment management at the self-employed professionals scheme, told IPE sister publication IP Real Estate that “first investments have already been made”.
Principal works across equities, fixed income and real estate sectors and manages $311bn (€225bn) in assets mainly for retirement plans and institutional clients.
In August last year, BVK awarded a €500m global real estate mandate to LaSalle Investment Management in a bid to diversify its exposure to the asset class.
BVK is also working on an infrastructure debt vehicle with two banks.
The scheme set up a Luxembourg-based fund for infrastructure debt, co-financing loans for a gas pipeline through Germany and a Dutch prison, worth €20m-70m each.