Corporate overview
MEAG[2] as asset manager of Munich Re has access to an international network of experts, enabling MEAG to offer extensive know-how to institutional investors and private clients not only within but also from outside the group. MEAG currently manages assets to the value of around €360bn, €62bn of which for non-Group investors. MEAG manages a total real estate volume of around € 15bn[3].
Our real estate investments are broadly diversified and focus on commercial and residential properties in Europe and North America. We provide clients with deep expertise and strong international market access. Our solutions range from direct investments, separate accounts to fund solutions. We take a holistic, risk-conscious approach to create value throughout each property’s life cycle, continuously seeking new, profitable real estate investments both domestically and internationally for our clients.
We provide institutional investors with the stability and expertise of the Munich Re Group, combined with the agility and focus of a leading international real estate investment manager. MEAG offers a comprehensive value chain, supported by over 150 in-house real estate professionals who deliver all key strategic and operational functions.
[2] MEAG MUNICH ERGO Kapitalanlagegesellschaft mbH (MEAG KAG) is a subsidiary of MEAG MUNICH ERGO AsserManagement GmbH (MEAG AMG). Any product available to institutional investors will be managed directly or advised by MEAG KAG.
[3] Includes assets managed by MEAG KAG and MEAG AMG.
Strategic corporate development
We operate from a position of strength, backed by the strong foundation for long-term growth within the Munich RE group. In the current market environment, we see compelling opportunities to invest in real estate at attractive entry prices and low competition, and we are actively positioning ourselves to benefit from these favorable conditions.
As part of our strategic expansion, we are focused on broadening our base of institutional clients. We aim to build lasting partnerships by offering investment solutions that align with the evolving investors’ needs and objectives. At the same time, we are working to diversify our product offering, with the goal of delivering joint venture investment opportunities across Core and Core Plus risk-return profiles in Europe.
We see ourselves well positioned for the future with the combination of a strong foundation, market opportunity, and client-centric growth strategy.
Sector forecasts
INDUSTRIAL:
We expect the logistics sector to continue to perform well, driven by ongoing growth in e-commerce, and changes to the supply chain. We anticipate continuing demand for modern, well-located facilities outpacing supply in many regions, driving rental growth. In our view, investor appetite is likely to stay strong, with pricing stabilized and transaction volumes gradually increasing. We forecast continued resilience and long-term growth in this sector.
OFFICE:
While we see compelling investment opportunities in prime, central locations with the potential for rising rents, our outlook for non-central office markets remains more cautious. We believe the office as a workspace is here to stay, with attendance having stabilized and signs of return to office emerging. However, the office is evolving into a hub for collaboration and a space where employees connect with their employer. To fulfill this role, factors like micro-location, transport links, quality fit-outs, flexible floorplates, digital infrastructure, and ESG considerations will become increasingly important. Unlike in the U.S., we expect European CBDs to offer minimal new development opportunities in central areas, resulting in limited availability of modern office space and driving strongerrent growth for properties in such locations.
RESIDENTIAL:
In our view, residential real estate remain highly attractive, underpinned by urbanization, and persistent housing shortages in attractive metropolitan areas. We expect continued demand for rental housing, particularly in urban and commuter-friendly areas. While we see the rise of alternative living arrangements, such as serviced apartments and temporary housing, we expect these to remain a niche market segment. Overall, our outlook for residential investments is positive, but success will depend on effective ESG integration and careful management of regulatory risks.
RETAIL:
We see a polarization of the retail market with food-anchored driven assets outperforming investor interest in traditional retail. Our expectation sees stable demand for grocery-anchored retail parks, supported by long term lease agreements and tenant resilience. In addition, we believe that supply is severely limited due to restrictive planning laws, e.g. in Germany. Despite expected changes in the tenant profile an in-demand space concepts, we believe that food-anchored assets offer attractive opportunities in the coming years.
OTHER:
Alongside these four core investment sectors, we aim to expand our investments in educational properties in Germany. We recognize the significant need for private capital to meet the demand for both developing new and refurbishing existing educational facilities across the country. This investment opportunity is particularly compelling due to the long-term cash flow stability, full rent indexation, and the security of having public sector tenants.
Investment principles & strategy
With our heritage as the primary asset manager for Munich Re and ERGO, our investment principles and strategy emphasize risk management, stable cash flows, and a long-term approach across all asset classes.
- Holistic expertise: At MEAG, we take an integrated approach to managing real estate investments, actively engaging in all key business areas and overseeing the entire life cycle of assets to enhance portfolio value.
- Forward-looking: Our research team continuously analyses global real estate markets, optimizing strategies and portfolios based on their insights to capitalize on opportunities and maximize potential.
- Broad diversification: We invest selectively across countries, risk classes, and property types, with a focus on Europe and the U.S., ensuring a well-diversified portfolio.
- Minimized risk: MEAG responds swiftly to market developments, identifying investment opportunities and securing asset performance through broad risk diversification.
- Global network: We collaborate with a trusted global network of service providers, leveraging local expertise to seize opportunities in regional property markets.
Performance verification
MEAG conducts a centralized and independent performance and risk measurement for its liquid and illiquid assets such as real estate. The KPI setup comprises of Total Return, IRR, TVPI and DPI as well as fund specific figures. For real estate, all performance numbers are calculated on property or fund level.
COMPLIANCE STATEMENT
MEAG’s Compliance Function[1] is a centralized and independent unit within MEAG. It is managed by the Chief Compliance Officer who reports directly to the management board of MEAG. The Compliance Function has a comprehensive mandate to implement, monitor and adjust all relevant and necessary compliance measures.
The core task of the Function is to continuously monitor MEAG’s compliance with applicable rules and regulations. This includes monitoring activities related to transactions for managed client assets, proprietary transactions of MEAG companies and employee transactions, both in liquid and illiquid asset classes.
In addition, the Compliance Function has a consulting approach to the whole MEAG organization and handles compliance-relevant information.
The Compliance Function is also responsible for maintaining contact with the relevant supervisory authorities on behalf of MEAG and for responding to any inquiries from these authorities.
[1] The compliance function is outsourced to MEAG AMG.
