UBS Asset Management’s Real Estate & Private Markets (REPM) arm said its Multi-Managers Real Estate (MM-RE) business has been awarded a €225 mln mandate by a major German institutional client to invest in unlisted property funds in developed real estate markets worldwide.
The new mandate increases total assets under management, including commitments, by the MM-RE team to over $17 bn.
MM-RE has provided its new client with a tailor-made investment solution designed to meet the institutional pension plan’s return targets, while abiding by specific regulatory requirements. The mandate will invest internationally in primarily core strategies selected from a broad universe of real estate fund managers with whom the MM-RE team has longstanding relationships.
The MM-RE business, which has more than 50 employees located across eight locations, forms an integral part of the REPM platform and was set up in 2007.
Joerg Sihler, head of Corporate Clients of UBS Deutschland, commented: 'This is an excellent result and illustrates the extent to which our MM-RE product has gained further traction in the German market, having attracted the attention of one of the country’s leading institutions. There is a growing awareness of real estate as a convincing indirect investment proposition on account of the attractive uncorrelated returns it can offer, in addition to the possible income upside in the current low interest rate environment.'