Top German asset managers more optimistic in 2014 ranking

Every year the Cologne-based Bell Management Consultants produce their annual ranking of Germany's top real estate asset management companies. This year has seen a number of changes at or near the top as big portfolio investors with their own in-house asset management capacities feature more prominently.

Heading the 2014 list is ECE Projektmanagement, followed by long-time leader Corpus Sireo, then Bilfinger, Patrizia Immobilien, IC Asset Management, and Acrest Property Group.

The Bell ranking is not the only study on the market place, as Bad Homburg-based FERI also produce a report every two years, although that study is more focused on companies that operate and manage their own funds, which excludes many of the 'pure servicers' that feature prominently in the Bell ranking.

The big difficulty in producing a meaningful ranking, of course, is that very few asset managers are directly comparable with each other. They would argue that they provide different services, have different specialities, and are unique in their client offering. As the table shows, many provide asset management services mainly for their own company owned assets, whereas others are more focused on acquiring mandates from third parties.

Despite the difficulties of comparing like, the Bell ranking has come to be seen as definitive in Germany, and is now in its sixth edition. For the latest survey a record 38 companies responded to the comprehensive questionnaire detailing the extent of their services, fee structures and client preferences.

According to Peter Brieger, senior analyst at Bell Management Consultants, the 2015 survey highlights increased optimism among respondents about the state of their industry. 86% of those surveyed see growth in the market for their management services, up from 77% last year. The big growth is expected to come from foreign investors and German institutional investors – 86% of managers are already dealing with foreign clients and 75% with German institutions. Not surprisingly, public-sector institutions, along with banks, have seen their share of the market slide steadily over the years, and this year is no exception.

55% of respondents conceded that their hopes of profiting from the non-performing portfolio sector had proved optimistic. By contrast, 63% of respondents expect that corporate real estate holders are increasingly likely to outsource certain asset management functions to specialists – well up on last year's 38%. Only 20% believe that their business with corporates is likely to decrease in the future, down from last year's 34%.