Swiss Life, Corpus Sireo expand with new hybrid funds
The Zurich-headquartered insurance and pension group Swiss Life Asset Managers is launching two new real estate funds bundling several of its existing high-end real estate portfolios. The idea is to provide institutional investors with their first-ever opportunity to invest in a fund made up of both German and residential property. The funds are scheduled to launch in this year's fourth quarter.
Corpus Sireo, the German asset manager which was bought by Swiss Life last year, will be establishing the first fund, which will have a targeted initial volume of up to CHF 400m, rising over time to CHF 1bn. Launch date is scheduled for December 1st.
The second fund, to be launched on November 1st, will be set up under Swiss law with an existing real estate portfolio of CHF 500m. With the proceeds from the issue, the fund plans to buy a broadly diversified portfolio of Swiss residential and commercial property combined, from Swiss Life property holdings.
Corpus Sireo staff have been waxing lyrical about the positive climate prevailing since their takeover last year by the Swiss insurer, in a move which initially surprised the market when it was announced last year. Corpus Sireo had put itself up for sale but not many had figured that a Swiss insurance group would be so interested. However, Swiss Life are making a big commitment to their three core markets of Switzerland, Germany and France, and Corpus Sireo CEO Ingo Hartlief assured members of the press at a briefing recently that the planned synergies were really beginning to come through for the enlarged group.
First concrete steps include the expansion of Corpus Sireo's Luxembourg-based funds business for institutions, beefing up its management team and launching a new retail-focused fund with a target volume of €400m by 2016.
The RetailCenter Fonds has already raised €85m in equity from two German institutions, and has bought its first asset in eastern Germany. This is the Weisseritz Park shopping centre in Freital near Dresden. The centre was opened in 1994, and has 22,000 sqm of lettable space across 65 stores and parking for 750 vehicles. Metro-ECE is the centre's commercial, technical and leasings manager.
The fund is targeting eight to ten existing core properties with individual volumes starting at €30m. The new Spezialfonds offers the market for the first time access to a new investment category of hybrid mall/retail centres.
Two experienced Corpus Sireo managers have also been promoted to Corpus Sireo' investment management subsidiary in Luxembourg, which currently has €2.3bn under management. Hans Stuckart has been fund manager with the company since 2011 and will become head of portfolio and asset management. Tim Brückner has been client group leader for financial institutions, and now takes over responsibility for sales and new product development. The two succeed Christian Schütz, who is leaving the company.