Corporate overview
MEAG1 is one of the largest multi asset management companies globally and a major player in the real estate investment management industry, managing a total real estate volume of over €15bn.
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.
1 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.
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. Building upon our successful track record of group investments in alternative asset classes such as real estate, forestry, agriculture, infrastructure 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:
Following the yield correction, the logistics sector presents attractive investment opportunities, particularly as demand for high-quality logistics space in established corridors remains robust. We believe that prime yields in most major European markets have peaked. Favourable market conditions, including rising e-commerce activity, increasing freight volumes, and a scarcity of suitable development sites, are expected to drive continued rental growth in the coming years.
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 stabilised. 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 (CBD), transport links, quality fit-outs, digital infrastructure and ESG considerations will become increasingly important. Unlike in the US, we expect European CBDs to offer minimal new development opportunities in central areas, resulting in limited availability of modern office space and driving stronger rent growth for properties in such locations.
RESIDENTIAL:
We believe that economically robust metropolitan areas remain highly attractive for residential investments. This is primarily due to construction activity in many European cities failing to keep up with the growing demand for affordable housing, exacerbating the supply-demand imbalance. While we are seeing 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:
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 planning laws. Despite expected changes in the tenant profile and in-demand space concepts, we believe that this segment offers 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 recognise 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 emphasise 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, optimising strategies and portfolios based on their insights to capitalise on opportunities and maximise potential.
- Broad diversification. We invest selectively across countries, risk classes and property types, with a focus on Europe and the US, ensuring a well-diversified portfolio.
- Minimised 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 centralised 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
MEAGs compliance office is a centralized and independent unit within MEAG. It is managed by a compliance officer who reports directly to MEAGs CEO and to the management board of MEAG. The compliance office 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 organization and handles compliance-relevant information.
The core task is to continuously monitor MEAGs compliance rules and regulations. The Compliance Officer monitors and controls transactions for managed client assets, proprietary transactions of the MEAG companies and also employee transactions.
The control by compliance includes transactions in liquid and illiquid asset classes. The Compliance Officer is also responsible for maintaining contacts with the relevant supervisory authorities on behalf of MEAG and for responding to any inquiries from these authorities.
