Germany’s open-ended fund managers are beginning to improve transparency. Four of the largest, CGI, Degi, Deka Immobilien Investment and Difa will now publish market values for their real estate portfolios and also give details of rents and yields. They have also pledged not to withhold information from rating agencies.
And DekaBank chief executive Axel Weber said that, in the first half of next year, the real estate business would sell assets, step up internal supervision and publish more information about the shape of its funds in a bid to regain investors’ confidence.
The fortunes of Deka’s real estate funds sent ripples throughout the industry, but rivals including DB Real Estate have issued assurances they do not face such problems. DekaBank has had to assure investors publicly of its support in stabilising Deka Immobilien Fonds and gave it a e1.2bn cash injection into its domestic fund to balance cash outflows.
Rival DB Real Estate Germany also presented its half-year accounts for its two open-end real estate funds in December, exceeding the legal requirement and the (until now) usual standards in the sector.
DB Real Estate has also appointed a new global chief executive. Chuck Leitner replaces Don King, who has been promoted to a new role in Deutsche Asset Management. Leitner has 23 years of experience in real estate investment and joined RREEF, the North American component of DB Real Estate, in 1988, becoming a partner in 1996.