- Real estate assets increase to EUR 50 billion
- Acquisition and sales volume EUR 3.1 billion in 2022
- Sustainability: Certification rate at a high level of 79%
- EUR 3.3 billion in real estate financing arranged
Despite encountering various hotspots, Deka Immobilien has continued to increase its real estate assets. Real estate assets under management amounted to EUR 50 billion at the end of 2022. This represents an increase of EUR 3 billion on the end of 2021. Real estate funds remained popular with private and institutional investors in 2022. “Our open-ended real estate funds have once again proved their worth when it comes to stabilising securities accounts during periods of price fluctuations. Investors rightly continue to rely on real estate to diversify their investment portfolios,” says Dr Matthias Danne, Deka Board of Management member with responsibility for Asset Management.
Transaction volume of EUR 3.1 billion in challenging market environment
In the course of 2022, the Deka real estate funds took a more cautious approach to purchases given that increasing interest rates were causing a high degree of uncertainty about pricing among market participants. Despite the challenging market environment, the transaction volume for 2022 amounted to EUR 3.1 billion. Of this figure, EUR 2.4 billion was for purchases, and EUR 700 million was for sales. The retail funds acquired eight properties for EUR 1.8 billion and sold seven properties for EUR 400 million. The institutional funds purchased 20 properties for EUR 600 million and divested themselves of 12 properties for a total of EUR 300 million.
Deka Immobilien anticipates a transaction volume of around EUR 4 billion in 2023. “As investors with strong equity capital, we see opportunities for selective anticyclical investments for our open-ended real estate funds,” says Danne. Already in December 2022, the Deka-ImmobilienEuropa and WestInvest InterSelect open-ended real estate funds acquired the Booking.com headquarters in Amsterdam – premium real estate in an excellent location and at an adjusted price.
Google Campus in Seattle – Deka Immobilien started the new year by making its largest single acquisition outside of Germany to date. The company acquired the Google Campus Lakefront Blocks 25 & 31 in Lake Union, Seattle, USA, for USD 802 million.
Kranhaus 1 in Cologne – Kranhaus 1 and the two neighbouring Kranhaus buildings in the Rheinauhafen area of Cologne create a new landmark in this Rhine metropolis. Completed in 2008, Kranhaus 1 offers more than 17,000 m² of leasable space and is leased to nine tenants under long-term leases.
8 Hanover Quay in Dublin – The property was built in 1920 and renovated to new-build quality in 2016. The leasable space of around 3,750 sqm is used in full under a long-term lease by Airbnb Ireland.
Ancora 40 in Madrid – The office building was core renovated in 2021 and features a high level of space efficiency. It spans more than 7,000 m2 of leasable space and has 57 parking spaces. The four connected units are fully leased.
Headquarters of Booking.com in Amsterdam – The property, which comprises around 54,000 square metres of leasable space, is part of the new Oosterdok office location. The new Booking.com headquarters will be home to more than 5,000 employees and marks the completion of this area as the last development on Oosterdokseiland.
Total customer assets increase to EUR 53.7 billion
Total customer assets rose by EUR 3.5 billion to EUR 53.7 billion in 2022. Net sales for 2022 amounted to EUR 2.6 billion, of which EUR 700 million was from the institutional area.
Certification rate at a high level of 79%
The sustainability-related certification of fund properties has been a key element of the Deka Immobilien sustainability strategy since 2010. The certification rate was around 79% at the end of 2022, based on the total real estate assets of the Deka funds. All five Deka Immobilien retail funds consistently observe ESG criteria and have been classified as Article 8 funds under the Disclosure Regulation.
High occupancy rate of 95.2% across portfolio as a whole
Leasing performance was again at a high level in 2022 due to the conclusion of lease agreements with a net annual lease volume of EUR 365 million. The portfolio as a whole had an occupancy rate of 95.2% at the end of 2022.
EUR 3.3 billion in new real estate financing
EUR 3.3 billion in new real estate financing was recorded in 2022 (including EUR 400 million from renewals). EUR 740 million in placements were made. EUR 300 million of this amount was for companies in the German Savings Bank Finance Group (Sparkassen-Finanzgruppe).