6 June 2018, Amsterdam – INREV’s German Vehicles Annual Index 2018 recorded a ten-year high for non-listed real estate performance in Germany, with total returns of 4.29% over 2017, up from 2.68% the previous year.
The results were largely due to a very strong performance in the first half of the year, driven especially by income returns of 4.34% over the year, which were the highest on record and significantly ahead of capital growth at 0.01%.
Special place for Spezialfonds
Spezialfonds continued to outperform Publikumsfonds, in line with the upward trend of the past seven years since 2011. This year, the gap has widened considerably between the two vehicle types with Spezialfonds delivering their highest returns since 2001 at 7.76%, well ahead of the 2.55% recorded for Publikumsfonds.
Value added vehicles also enjoyed a remarkable surge. They shook off previously sluggish performances in 2015 and 2016 of -1.79% and -3.81% respectively, accelerating to 9.08% – the best performance since 2006 and substantially outpacing core vehicles, which reached 4.25%.
Domestic bias
Vehicles targeting Germany only, produced healthy double-digit returns of 10.20%, up from 7.23% for the previous year.
Some way behind, but still robust, vehicles with a European strategy also improved on previous years, reaching 4.46%; while those with a Global strategy posted returns of 3.28% in 2017.
Residential sector continues to lead the way
Residential remains the best performing sector for the third year running, reaching its highest performance on record with a total of 9.92%. Despite this remarkable result, the gap to other sectors was much narrower in 2017 than it was in 2016. Retail, the next best performer, was only 1.2% behind residential with total returns of 8.71% – notably higher than the previous year’s achievement of 4.96%.
All other sectors also witnessed improvements, with industrial/logistics vehicles hitting a convincing 7.10%; and the office sector shifted back up from 1.37% in 2016 to 3.58% in 2017.
Commenting on the findings, Henri Vuong, INREV’s Director of Research and Market Information, said: ‘‘These results show investment in German non-listed real estate vehicles returning very strongly with the best performance since 2007. It’s a compelling story that puts Germany some way ahead of the European region as a whole. Interestingly, the double-digit returns for vehicles targeting Germany only show that German domestic investors are being rewarded for their loyalty.’
– Ends –
For further information, please contact:
Johlyn da Prato, johlyn.da.prato@inrev.org | +31 (0) 621 397 456
Lauren Hewitt, inrevteam@firstlightpr.com | +44 (0) 7776 146 434
Jack Rodgers, inrevteam@firstlightpr.com | +44 (0) 7580 427 746
Notes to Editors
About the German Vehicles Annual Index 2018
The INREV German Vehicles Annual Index measures net asset value performance of non-listed real estate vehicles domiciled in Germany. Performance is measured on an annual basis and is net of fees.
The Index was launched in 2016 with support from BVI, the German Investment Funds Association and includes historical data from 2001.
This edition of the index includes 176 vehicles (162 funds, 13 separate accounts and 1 club deal) and represents total GAV of €131.6 billion as at end 2017.
About INREV
INREV, the European Association for Investors in Non-Listed Real Estate Vehicles, was launched in May 2003 as a forum for investors and other participants in the growing non-listed real estate vehicles sector. The association represents and reflects an industry with a total value of €2.1 trillion and INREV members deliver €300 billion of stimulus to the real economy of Europe.
INREV has 422 members which include 75 of the largest institutional investors as well as 40 of the 50 largest real estate fund managers, plus banks and advisors across Europe and elsewhere.
The non-profit association is focused on increasing the transparency and accessibility of non-listed vehicles, promoting professionalism and best practice, and sharing knowledge. It is based in Amsterdam, the Netherlands.