MEAG launches European office property fund – Munich Re and MAPFRE delivering initial properties as seed investors

MEAG, the asset manager of Munich Re Group, has launched a new European core office property fund. The fund focuses on high-quality office properties in prime locations in Europe’s top venues. Munich Re and MAPFRE, the globally active Spanish insurance company, are partnering as seed investors for the fund. They are contributing to the initial asset portfolio with existing core properties they are holding in Germany and Spain respectively.

These joint efforts by Munich Re and MAPFRE are underlining the well-established partnership between them. Both insurance groups have been successfully working together for many years. Hence, expanding the scope of their strategic partnership around this new fund in the asset management area is the logical next step.

Nicholas Gartside, CIO and Member of the Board of Management of Munich Re: “I am delighted that with this collaboration, we are able to extend and deepen our relationship with our insurance partner of many years standing, MAPFRE, to now also encompass asset management. It is strategically important for Munich Re to enrich our interlocked business model with asset management activities, and to offer value-adding services to our clients.”

Fernando Mata, MAPFRE CFO and a member of the Board: “In recent years we have diversified our portfolio with alternative funds as a result of the very low rate environment. And we have always done so with the best partners. That is why we are proud to embark on this new alliance with Munich Re, a partner we have been working with for so many years, now in the real estate sector”.

The fund considers environmental and social aspects as an integral part of its investment strategy. The fund complies with the requirements of Article 8 of the SFDR as a sustainable investment solution – with a focus on decarbonisation through higher energy efficiency and lower carbon footprints, in line with the Paris Agreement. This further emphasizes the sustainability ambitions of Munich Re, MEAG and MAPFRE, and caters to the ever-growing demand for sustainable investment solutions in the institutional segment.

Frank Becker, MEAG Managing Director responsible for institutional clients: “Over the last years, we have successfully grown our footprint in the institutional investor segment as the partner of choice, and we continue to do so. This is the case for traditional asset classes as well as real assets, as we provide holistic and tailor-made solutions in both segments. High-quality, well-diversified office property investments continue to be an important building block in institutional portfolios. During the pandemic, attractive office properties in central locations have proven again to be a potential source of steady income. Therefore, we are happy to add to our range of investment solutions with a new property fund supporting our clients’ needs.”

Following the initial phase, the fund will purchase further European office properties across Europe to build a pan-European portfolio. The fund volume is intended to reach around €500m by 2023. In 2024, the fund shall be open for investments by other institutional investors from Germany and Europe, underlining MEAG’s ambitions to further expand their business in the institutional clients segment. This shall grow the fund to €1bn by 2025.

MAPFRE is a global insurance company. It is the benchmark insurer in the Spanish market and the largest Spanish multinational insurance group in the world. The number one Non-Life insurance group in Latin America and the sixth in Europe by Non-Life premium volume. MAPFRE employs almost 32,500 professionals and in 2021, the company’s revenues totaled almost 27.3 billion euros, with net earnings of 765 million euros (+45.3%).

MEAG is the asset manager of Munich Re and ERGO. With offices in Europe, Asia and North America and offers its extensive know-how to institutional investors and private clients. MEAG currently manages assets to the value of around €344bn, €66bn of which for institutional investors and private clients.