Savills IM completes record transactions in 2018, AUM swells to €18.3b

International real estate investment manager Savills IM completed a record €4.2 bn in transactions in 2018 across Europe and Asia.

Savills' activity comprised €3.1 bn of acquisitons and €1.1 bn of disposals, the company reported on Tuesday. Around €600 mln was invested on behalf of German institutional investors in Europe alone. Total assets under managment rose to €18.3 bn.

A total of 80 transactions took place in 12 countries, with €3.6 bn of activity in Europe and €580 mln in Asia. Much of the increase in activity was accounted for by Savills' success in investing more than €1 bn of capital in strategic partnerships for Korean investors.

The company increased its presence in Spain and Portugal with the takeover of Zaphir Asset Management Spain in 2017, whose assets under management has since grown from €200 mln to €800 mln, including a Spanish office portfolio acquired for around €280 mln.

Major purchases included the NUBIS office building in Berlin on behalf of the European Commercial Fund for German institutional investors, as well as a 40,000 m2 office building in Munich for an Asian investor for a total outlay of more than €250 mln.

Purchase agreements have been signed for a further six properties for a collective investment volume of more than €200 mln, including two logistics assets in Germany. These deals are expected to be completed early in 2019.

Savills IM successfully completed the sale of all of its Greater Tokyo Office Fund properties, leading to the launch of the Japan Value Fund II successor fund with the support of existing investors.

The company also acquired a 25% stake in DRC Capital, which raised around €780 mln in 2018 for its UK Whole Loan Fund, significantly more than its target of €550 mln.

Carolina von Groddeck, head of Germany at Savills IM, said: 'The European real estate markets have grown strongly in 2018, but there is enough room for the momentum to continue into 2019. However, we are clearly in the late stage of the cycle.

'The German real estate market is continuing to benefit from the positive macroeconomic climate and is thereby increasingly attracting foreign capital. This is also reflected in our company: Through our expertise and international presence we have established ourselves as a real estate investment manager that can quickly and successfully complete complex large deals for strategic partnerships and club deals.'


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