Munich Re, Mapfre form partnership for European core office property fund

Munich Re, Mapfre form partnership for European core office property fund

Meag, the asset manager of Munich Re Group, has launched a new European core office property fund to invest in high-quality office properties in Europe’s prime locations.

Munich Re and Mapfre, the globally active Spanish insurance company, are partnering as seed investors for the fund.

They are contributing to the initial asset portfolio with existing core properties they are holding in Germany and Spain respectively.

Following the initial phase, the fund will purchase further European office properties across Europe to build a pan-European portfolio. The fund volume is intended to reach around €500m by 2023.

Nicholas Gartside, CIO and Member of the Board of Management of Munich Re: “I am delighted that with this collaboration, we are able to extend and deepen our relationship with our insurance partner of many years standing, Mapfre, to now also encompass asset management. It is strategically important for Munich Re to enrich our interlocked business model with asset management activities, and to offer value-adding services to our clients.”

Fernando Mata, Mapfre CFO and a member of the Board: “In recent years we have diversified our portfolio with alternative funds as a result of the very low rate environment. And we have always done so with the best partners. That is why we are proud to embark on this new alliance with Munich Re, a partner we have been working with for so many years, now in the real estate sector.”

Meag said the fund considers environmental and social aspects as an integral part of its investment strategy.

It complies with the requirements of Article 8 of the SFDR as a sustainable investment solution – with a focus on decarbonisation through higher energy efficiency and lower carbon footprints, in line with the Paris Agreement.

Frank Becker, MEAG Managing Director responsible for institutional clients: “Over the last years, we have successfully grown our footprint in the institutional investor segment as the partner of choice, and we continue to do so. This is the case for traditional asset classes as well as real assets, as we provide holistic and tailor-made solutions in both segments. High-quality, well-diversified office property investments continue to be an important building block in institutional portfolios. During the pandemic, attractive office properties in central locations have proven again to be a potential source of steady income. Therefore, we are happy to add to our range of investment solutions with a new property fund supporting our clients’ needs.”

In 2024, the office property fund shall be open for investments by other institutional investors from Germany and Europe. This shall grow the fund to €1bn by 2025.