Corporate overview
MEAG is one of the largest asset management companies globally and, with real estate assets under management of almost €16bn (June 2023), a major player in the real estate investment management industry. Since 2017, MEAG has completed property transactions in Europe and North America with a volume equivalent to over €5bn.
Our property investments are broadly diversified: We invest in different property types, countries and risk classes. In addition to top-quality advisory services, we also offer our clients well-founded know-how and international market penetration. We pursue a holistic and ESG-focused approach to generate value throughout the entire life-cycle of each property, and we are always looking for new, profitable real estate investments on the domestic and international markets for our clients.
We offer institutional investors not only the solid foundations and experience of Munich Re Group but also the agility and focus of an international real estate investment manager.
Strategic corporate development
Amidst the prevailing economic and political challenges, institutional investors are showing an increasing interest in finding investment angles that can provide steady, inflation-protected cash flows over the long term. Concurrently, they aim to capitalise on the existing uncertainty. MEAG has aligned its strategies accordingly. This commitment is evident through the introduction of the real estate fund MEAG EuropeanOfficeSelect, the MEAG Infrastructure Debt Fund III, the MEAG European Infrastructure One and the MEAG Sustainable Forestry Equity Fund.
Building upon our successful track record of group investments in alternative asset classes such as forestry, agriculture and private equity, we are currently developing additional approaches. These approaches will grant institutional investors access to these highly sought-after sectors.
Nonetheless, we will also remain vigilant for opportunities within the liquid securities markets. Being a globally positioned and proactive asset manager in this domain, we believe we are well-equipped to adapt to the market conditions, ensuring that we consistently provide enhanced value to our clients.
Sector forecasts
INDUSTRIAL:
At MEAG, we believe that European logistics have attractive fundamentals. Especially for well-located assets, we are convinced of the long-term need for flexible logistics. Additionally and in support of the long-term investment case, we see attractive rental levels offering future rental growth potential and limited future supply due to current interest rate levels, sharp increases in construction costs and restrictive land allocation.
OFFICE:
In the office sector we see a fundamental bifurcation of the market. While remote offices and lower-quality buildings suffer from the consequences of the working from home trend and changed occupiers’ demands, centrally located offices remain attractive and benefit from limited supply and stable demand. We believe that hybrid work and flexible demand for office space as well as sustainability aspects will reshape the office of the future, offering opportunities in the integrated management of centrally located properties ahead.
RESIDENTIAL:
The housing market is broadly characterised by a mismatch between supply and demand – especially in the affordable housing segment – and a general vulnerability to government intervention. We expect further pressure on the supply side from rising construction costs as well as restrictive approvals that limit value adjustments and lead to attractive rental development in metropolitan areas and university cities. From a risk management perspective, we consider the residential segment attractive, especially due to the highly diversified tenant structure, while local government interventions need to be closely monitored.
RETAIL:
German retail parks form an interesting niche segment where adjusted yield levels offer attractive prices. We believe that food-anchored investments offer resilient and non-cyclical returns with long lease terms. In addition, supply is severely limited due to restrictive building laws. Despite expected changes in the tenant profile and in-demand space concepts, we believe the segment offers attractive opportunities in the coming years.
Investment principles & strategy
Based on our heritage as the primary asset manager of Munich Re and ERGO, our investment principles and strategy put risk management, stable cash flows and a long-term investment approach at the core of our investments across all asset classes.
- Holistic expertise. At MEAG, we place great value on an integrated approach when managing real estate investments by being active in all key areas of the business and managing real estate along the life cycle, while pursuing the goal of increasing the value of the portfolio.
- Forward-looking. Our research team is constantly analyzing the events on the world’s real estate markets. Based on their findings, we optimise strategies and portfolios and develop solutions to exploit opportunities and maximise potential.
- Broad diversification. We invest selectively in different countries, risk classes and types of use with a focus on Europe and the US.
- Minimised risk. MEAG immediately reacts to market developments for our clients, identifies investment opportunities and secures the performance of the assets on a solid foundation of broad risk diversification.
- Global network. We work together with a long-standing global network of selected service providers. This enables us to bundle expertise at the relevant location and make the most of the opportunities offered by regional property markets.
Performance verification
MEAG conducts a centralised and independent performance and risk measurement for its liquid and illiquid assets such as real estate.
COMPLIANCE STATEMENT
MEAG’s Compliance department is a centralised and independent unit within MEAG. It is managed by a Chief Compliance Officer who reports directly to MEAG’s CEO and to the management board of MEAG. The Compliance department has a comprehensive and central management function in order to implement, monitor and adjust all relevant compliance activities. In addition, it has a consulting approach to the whole MEAG organisation and handles compliance-relevant information.
The Compliance department continuously monitors MEAG’s compliance rules, legal changes and supports the implementation of new regulatory requirements into affected processes. The Compliance department is also responsible for maintaining contacts with the relevant supervisory authorities on behalf of MEAG and for responding to any inquiries from these authorities.
